E- Signature is a method of signing documents online. This can be created by scanning wet signatures or creating a new one with the concerned platform.
Frauds Related to E-signature: E-Signatures are unique materials that help to create the individual identity of the holder. After the rapid growth in online businesses, various transactions were done online. When a person receives a document online where a signature is required, the traditional wet signatures seem to be no help.
E-Signature was introduced to help people in this kind of situation. The E- Signature was introduced in the late 70s, but it gained popularity after the 90s. After the sudden rise in the popularity of E- Signature, numerous industries relied on this medium to sign their essential documents.
An E signature is a form of the signature made online to sign online data. These signatures carry the same legal importance as traditional signatures. E- Signatures are used everywhere on the internet. Whenever you sign a document online by writing your name under it, in order to accept the document, it is included in E- Signature.
E- Signatures are popularly becoming the best available substitutes for traditional signatures. They are simpler than digital signatures. E- Signatures have a wide ambit, and every type of acceptance or recognition by writing the name is included. An E- Signature can be a name written under an E- mail or a scanned wet signature used for identification.
E- Signatures carry legal values and are recognised by the court of law. From different types of E- Signature, a signature done by using a stylus on a screen or an E-Signature done by using a specific E- Signature platform carries utmost legal value. In India, the Information Technology Act, 2000 regulates the legal aspects of E- Signature. It provides various provisions relating to the legality and use of E- Signatures.
Digital Signature – What Is It?
Digital signatures are electronic signatures that are supported by digital certification. These certifications provide identity assurance for the user. This modern alternative is now being widely accepted and used all over the world.
A class 3 digital signature uses mathematical techniques to maintain the authenticity and integrity of the signature. This assures the user of the uniqueness of the signature and prevents tampering or any misuse.
Mathematical algorithms are used to create an authentic virtual fingerprint that creates uniqueness among other signatures. A digital signature is more secure than other E- Signature methods. A digital signature contains various data about the holder that helps maintain the signature’s uniqueness and authenticity. A digital signature carries information about the message’s origin and the holder’s consent.
Advantages of Digital Signatures
Digital signatures are a secure way of E- Signatures, with the digital certification backing up their authenticity. This makes digital signatures more secure and reliable than other E- Signatures. The valid certification protects your signature and prevents any spoof. Digital signatures provide multiple benefits.
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Speed
In traditional signature techniques, if a signature is required on a document of a person who is not physically present, the document needs to be sent to the person by courier. After the person signs it, he sends it back similarly. Digital signatures have erased the distance barrier and made it easy to acquire the signature digitally at a quicker speed irrespective of distance.
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Security
The authentication available with the digital signature prevents the documents from being intercepted or destroyed during transit. The unique identifying keys protect the signature from foreign threats.
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Authenticity
The 3rd party or the digital signature platform provider provides certification of authenticity to the sign holder. This is sufficient to make it safe and can also be used as evidence in court.
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Mobility
Digital signatures help to incur documents and sign them without jeopardising security. You can sign and carry your documents no matter where you go.
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Accuracy
Digital signature providing software ensures the whole document is filled and signed correctly. The mandatory fields do not allow you to proceed unless you complete the document. By this, you can never miss a page.
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Cost
Using Digital signatures can avoid unnecessary money wastage on sending documents through courier.
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Origin
The Digital signatures carry specific information, including the origin of the signature. Once this link is established, anyone can never disprove it.
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Time
The Digital signatures carry timestamps to know when the document’s signature occurred.
Disadvantages of Digital Signature
Almost every product has two sides. If a product has certain good aspects, bad aspects don’t remain. The digital signatures also have some disadvantages moving around it.
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Certificate cost
To ensure the authenticity of your Digital signatures, you need a trusted certification. This certificate may cost you a lot of money, depending on the platform.
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Software
The software generates the certification of a Digital signature. Both the parties need the software to get the digital certificate.
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Expiry
Various Digital signatures have a limited period of validity. After the expiry of that period, this becomes useless.
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Legal acceptance
Every country has not given Digital signatures a place in legal acceptance. So if you are dealing with a foreign country organisation, a Digital signature may serve no benefit.
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Dependency
Digital signatures highly depend on technology and the internet. Digital signatures will likely change accordingly if any changes occur in technology.
How an E-signature Can Be Forged?
Forgery of a Digital signature includes creating a fake or non-genuine signature and applying it to a document in order to acquire some benefits. Digital signatures have so many elements to protect them and prevent unnecessary disputes. But it is not impossible to forge an E signature. There are various methods to forge an E- Signature.
Common Frauds Related to E-signature
Below given are few common frauds related to e-signature:
- An E-Signature can be forged using a cloud-based E- A signature process that helps the forger verify the signature in his name
- If your E- Signature platform provider is not authentic, there is a higher risk of your signature getting forged
- Some hackers may send you a document linked with their device to copy your signature simultaneously when you put it on the given document.
How can we Prevent Frauds Related to E-signature?
Fraud related to E-Signature can be prevented using various methods and being concerned while signing a document.
- Read and examine the source and authenticity of the document before putting a sign on it
- Use a cloud-based E- Signature process to verify all parties’ signatures
- Use a trusted platform that provides strong authentication and has policies to prevent fraudulent activities
- Use digital signature encryption that enables you to add the date and time of the signature. If anyone tries to change it, it will notify you
- Signing a document using a digital ID protects the document from being re-signed.
Case Laws Related to Fraud in E-signature
There is a well-known case law related to fraud in E- Signatures.
In the case of Marketlend Pty Ltd v. Blackburn, the Marketland company had paid a certain amount to a small residential van business operated by a divorced couple. The company sent certain documents related to the contract to the husband’s email address. But the documents were signed by the ex-wife. When the husband got bankrupt, the company sued the ex-wife for the remaining money. In the court, it was decided that the husband fraudulently lied into the ex-wife’s email to sign the documents.
Conclusion – Frauds Related to E-signature
Follow the article to understand why e-signatures have been essential in recent years and how to prevent Frauds Related to E-signature. Protect your e-signatures and maintain safe transactions. Reach out to Vakilsearch for any queries. Hope this blog frauds related to e-signature was helpful.
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