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eSign Fraud: Best Practices to Protecting Digital Signatures

Published 25 January 2025
eSign Fraud Best Practices to Protecting Digital Signatures
eSign Fraud: Best Practices to Protecting Digital Signatures

With the fast development of technology, doing business with any business or individuals, you need to be 100% sure that they are who you thought they were. The most common digital crime is fraud by either assuming another person’s identity or creating an identity of a person who doesn’t exist.

Organizations taking part in fraudulent activities will not only potentially be charged and eventually lose their customers. In addition to that, it will take time to resolve the fraud and process the crime—which organizations could better spend on something more important.

Hence, that is why verifying identity is an important step of signing digitally.

Table of Contents

5 Ways to Prevent Document Fraud

Making “high-trust” documents should be your backbone in protecting your business from swindling practices. The eSignature platform that provides state-of-the-art identity verification ensures that each signer is verified using government-issued identification methods.

Another option would be to incorporate trusted third parties, such as banks and telecommunications companies, to authenticate the identity of signers.

Here are five ways to protect your business from identity theft using eSignature:

1. Opt for an eSign provider that has ID verification

Most rigorous identity verification processes are tedious and complex. Find an eSign platform that provides various signature types and authentication alternatives set for different and specific trust levels desired by organizations and for the signer.

For instance, in financial services, a higher security level is needed to verify the identity of an unknown person submitting a loan application than renewing a current employee’s contract.

2. Enable the signers to choose their preferred method

A customer is more likely to finish the signing process when they can authenticate their identity with the method that both meets the required standard and their comfort level.

Moreover, they are less likely to become thwarted by the cumbersome process. Despite choosing the preferred method, such as government ID or passport, the authentication process will not only identify the signers but also prevent criminals from posing as other people.

3. Use impenetrable technology

eSignature platform that incorporates cryptographic seals in the process won’t allow signers to modify the signed document, which impedes many types of subterfuge.

Moreover, all activities and interactions are tracked by the seal—such as views, signatures, sends, and modifications—on its built-in audit trail.

4. Choose all-in-one platform

When you build your own identity verification process using a third-party app or service, it is inevitable that fraud would be more likely to occur.

By making use of an eSignature platform that already incorporates integrated ID verification, you can ensure that the risk of fraud and stolen identity decreases.

Read More: How to Choose the Right Digital Signature for Your Business

5. Examine for compliance certification

Before you onboard on a specific eSignature platform, note that your organization’s security is at risk if you employ a platform that does not comply with the legislation.

The best eSignature platform ought to clearly show how it satisfies the laws and regulations within the region of operations.

Examine whether the compliance, such as eIDAS and UETA, meet specific terms and conditions imposed by eSign Act 2000, PSrE, and other electronic legislation and regulations. Such terms and conditions are:

  • All parties involved in the documents must agree to sign documents electronically.
  • Signers within the document must make a visible mark or statement on the electronic document. The visible mark must be associated with the signers.
  • Since electronic signatures are only valid if the signers intended to sign the document, therefore, the signature requests must be allowed to be reclinable.
  • The signature made on the electronic document must be easily recognized.

Research whether each electronic signature software on your list complies with the laws and regulations, especially in each country of your organization.

Once potential risks have been identified, take the necessary actions to make sure your documents are legally binding. It is the best way to protect your business from fraudulent signatures and cybercriminals.

How Do You Identify Potential Threats?

Most of the time, money is the main motivation for signature forgery; however, other reasons lead people to do the crime. To prevent this from happening to you, it’s crucial to be vigilant for the warning signs.

One of the easiest ways to notice forgery is by looking at the appearance of the signature, which lacks consistency. Identify the irregularities, such as variations in style, pressure or shaky lines, different pen lifts, spacing, and alignments. Understanding what a forged signature looks like can be the key to spotting fake signatures.

Key Takeaways

There are five ways to utilize eSignature to prevent identity or signature forgery:

  1. Choose eSignature that provides ID verification
  2. Let signers verify their ID in their preferred method
  3. Use trusted and safe technology
  4. Pick a platform that already has it all
  5. Inspect each platform's certifications and compliance

Read More: How to Create a Digital Signature – A Comprehensive Guide

See How Mekari Sign Prohibits eSignature Frauds

Mekari Sign is dedicated to offering a high-trust electronic signature solution that is prominent in the industry and is of service to fraud prevention on a variety of levels.

Mekari Sign is integrated with Indonesia’s electronic ID and other government-led public identity initiatives around the world.

Be confident in using Mekari Sign’s eSignature by letting every signer undergo the highest level of ID verification based on the trust level that you are most comfortable with.

Learn more about Mekari Sign and how it can benefit your business.

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