An electronic signature or e-signed signature refers to information in electronic format, which is digitally related to other information in electronic format and that is used to sign the signature. It is similar to a fingerprint of a person, where the two electronic signatures are used as a single document. This type of signature can be used to authenticate an electronic transaction and provide protection for the person signing the transaction, and it helps establish a chain of trust between the parties involved in the transaction. You can easily sign documents online securely. The signature is only as good as the information that was entered into it, and if the information entered into it is false, then the signature will not hold up under cross-examination.
An online signature is a type of electronic document that contains information that is digitally signed. A signature on an electronic signature is generally signed using an electronic signature application. An electronic signature can be a key for entering into a secure system like a bank, brokerage, or clearing house or it can be used for signing an email or for electronic signing a document that has not been signed by an individual physically.
Secure and Traditional
Because electronic signatures are much more secure than traditional signatures, they can be used more often than other types of signatures. As an example, a mortgage company may use electronic signatures to verify the information entered when submitting an application for a loan modification to the federal government. The system used to verify the application will require that the information provided is true, accurate and complete. The verification is done through the signature of the applicant, which cannot be forged because the information entered is only digitally linked to the applicant’s signature.
Because electronic signatures can be performed over the Internet, they are safe from hackers. Because the information used to create the signature cannot be altered, there is no way for the data to be changed. This means that a hacker would have to spend a great deal of effort trying to manipulate the signature in order to gain access to the data that is required for altering the signature.
Better Way to Authenticate an Electronic Transaction
Because signatures cannot be manipulated, they are a better way to authenticate an electronic transaction. A person cannot alter the signature without also changing the electronic transaction and the electronic signature. This is because a person cannot change the digital signature that is attached to a person’s electronic transaction. A person cannot change a physical signature without changing all of the electronic signatures that are attached to that physical signature.
Can be Revoked
Another benefit of using a digital signature is that the signature can be revoked. This can be done if the signature is stolen or altered and the thief uses the information to commit fraud. If the thief uses the signature to change the electronic transaction without the knowledge of the original signer, the signature can be revoked before the electronic transaction is completed. This means that a person can recover any funds that have been transferred using the stolen signature and cancel the transaction.
Although many people do not realize it, electronic signatures are becoming increasingly common. They have numerous advantages and disadvantages, but the fact that they are secure makes them very useful for certain applications and transactions.