How To Safeguard Your Organization From eSign Fraud
Ways to tackle eSignature fraud and protect your organization effectively.
Digital transformation, which includes the widespread availability and use of eSignatures, has made it possible for people to connect remotely to get things done, including entering into contracts. Filip Verreth of Nitro Software discusses why many organizations are grappling to contend with the security challenges and ever-changing compliance requirements that can impact document integrity and eSignatures.
Striking business deals and penning contracts used to be a contact sport. People would travel across town or across the world to make agreements, sign paper documents and shake hands.
That’s no longer the norm. In today’s world, people involved in forging legally binding agreements often don’t connect in person. They may not have time to travel, or they may not want to since people are now accustomed to managing their personal and work lives online. More than a quarter (28%) of employees say they work remotely for the most part, nearly a fifth (18%) report describing their work environments as hybrid, and 50% say that they work mostly – although not entirely – onsite, according to LinkedIn’s Workforce Confidence Index.
As a result, the people entering into contracts may not know each other very well – if at all.
This calls for organizations to implement high-trust eSignature solutions, incorporating advanced security controls such as identity verification and digital certificates to ensure the integrity of their documents. In seeking such solutions, organizations should look for platforms that incorporate security, ensure compliance and protect against fraud.
Here’s what to consider and the kinds of processes and capabilities you need to implement.
Implement a Security Seal To Maintain Document Integrity
Keep in mind that you may need to defend the enforceability of a business or financial document in court. So, you must be able to confirm the legitimacy of your documents.
Preventing all involved parties from tampering with documents after they are signed is critical.
To prevent manipulation after signing, make sure you have the ability to apply a tamper-proof cryptographic seal to your document at eSigning. If you do that and the seal is broken, everyone who signed the document will be notified that the signatures have been voided.
Being able to provide evidence that the people who signed the document are the same people who executed the eSignatures is also extremely important. Be sure you have the tools to do identity verification. Keep in mind that regulations vary from country to country, so your solution should have the flexibility to meet the evidence requirements of various countries and regions – including those in the European Union, where such regulations are the strictest.
Take a World View in Addressing Compliance
Maintaining global compliance can be tricky, given how eSignature regulations vary across countries. You may be in one country where there is one set of requirements, and the other party might be in another country requiring a set of more stringent requirements to validate as a legally enforceable contract. Often you may not even know where the signer is located.
Contracts have to meet specific identity verification processes to be legally binding in some European Union countries, for example. So, even if your company is based in North America, you need to meet the stricter EU standards if you want to forge legally binding contracts with companies in certain EU countries. Also, be aware that some regulations apply to both companies’ headquarters locations as well as the locations of the signers at the time that they signed the contract.
Ensure your eSignature platform can seamlessly address global requirements to support your needs based on where your business operates. Pick a platform that supports global eSignature regulations and integrates with local third-party verification services to ensure compliance in each region in which you operate.
That way, if multiple board members spread out across multiple countries must sign a corporate resolution, for example, they can do that. And your compliance organization can rest assured that the document’s digital signature requirements are met for all possible locations.
Also make sure that you have a platform that supports the type of signatures that any and all of your business partners, and the countries in which they operate or visit, may require.
See More: Why Compliance Does Not Equal Cybersecurity
Prevent Fraud and Protect Your Organization
Entering into a fraudulent business deal can result in a loss of money and reputation. And prosecuting fraud is a complex and costly endeavor. The better approach is to get ahead of the problem and work to prevent it in the first place. Identity-based fraud protection is essential to avoid losses resulting from identity fraud in eSignatures.
Visibility is vital in this pursuit. Make sure you have the capability to understand the full journey of the document. This will provide you with an audit trail that starts at the beginning with the signature request; includes all change requests; and has the details all the way through to the time of completion. Also, employ a platform that allows you to review all recipient interactions to ensure that your documents have been shared with the necessary parties.
Use a solution that lets you control security assurance levels for digital transactions. You will probably want to use more stringent identity verification when signing a contract with a party you met over the internet vs. someone you know, such as a new remote hire vs. an existing employee who is renewing their employment contract.
See More: How AI Can Prevent Employee Expense Fraud
Offer customers the ability to select their method of identification. That could mean giving signers the option to sign agreements with their existing government IDs, bank IDs or other locally accepted digital IDs. When you provide customers with a choice, they are more likely to complete the verification process and less likely to become frustrated with it.
Organizations across the world drive efficiency and productivity and support remote work models through the use of eSignatures. And with the right high-trust solution, they can enjoy these benefits while enforcing the appropriate security measures and compliance requirements and preventing fraud.
Do you think eSignatures could be made more secure against fraud without curbing efficiency? Share with us on Facebook, Twitter, and LinkedIn. We’d love to hear from you!
Image Source: Shutterstock
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