The legalities of the digital signature

Understanding the difference between an electronic signature and a digital signature could have a critical impact on the legalities and security of any document trail.

“The electronic signature is usually defined as an identifying mark that can be anything from a photograph or a scan of a signature to a squiggle made on a mobile phone or tablet,”explains Adv Rian Schoeman, head of Legal, LAW trust, an Etion company. “It isn’t secure. In fact, the electronic signature is at risk of fraud as it is easy to copy, move and adjust.”

To ensure deeper security, digital signatures are more efficient and reliable. A digital signature ensures an auditable, provable trail that can be clearly linked to a specific person and identity. Usually, a digital signature can only be used once the individual has undergone a process of identity verification, which assures all parties that the right person has signed the right documentation.

“When you open a digitally signed document with a solution such as Adobe PDF reader, selecting the signature will reveal the digital certificate that outlines the individual’s name, surname, and other specified identifying factors such as an email,” says Schoeman. “These signatures are certified and legally binding.”

An electronic signature, paper based signature, photograph or email signature may have legal weight, but proving that the person’s intention was to be bound by that signature is an involved, complex process. A digital signature does not face the same challenge. The identity verification process ensures that much of this evidence is built into the signature. In the event of a query, the process is simplified by the digital trail and embedded forensic evidence.

“This will not only alleviate unnecessary issues that could occur further down the line but will provide all parties with the right levels of assurance from the outset,” concludes Schoeman.

First published in MoneyMarketing, April 2019