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It’s easy to assume that electronic signatures are inventions of the digital age, but they’re actually older than they seem. In fact, 19th-century telegraphed signatures and late 20th-century faxed signatures were already considered e-signatures. Still, the popularity of signing electronically started to rise with the introduction of various e-signature enactments in the late 1990s and early 2000s.
E-signatures make it easier for businesses to close deals faster, not to mention that they’re perfect additions to a paperless office. What’s more, an electronic signature is significantly safer because it’s much more difficult to forge than a wet signature.
An electronic signature is the digitized equivalent of a wet signature. The term itself is quite broad since any kind of digital identification of a person can be considered an e-signature. For example, when you write an email and type your name at the end, you’re using a simple electronic signature.
There are advanced e-signatures as well that are cryptographically linked to a document and typically used in person, such as when electronically signing a banking contract with a stylus. The safest variations are qualified electronic signatures, which are highly secure and always created with e-signature software.
No, electronic signatures and digital signatures are not the same. In principle, an electronic signature’s main benefit is that it’s convenient, fast, and easy to track. However, the security of electronic signatures is lax unless you use a dedicated e-signature platform.
In comparison, digital signatures are cryptographically encrypted and can protect documents via digital seals and certificate-based IDs. Most importantly, they invalidate a signing process if someone tries to edit the document after the signature request has been sent out.
Electronic signatures work exactly the same way as wet signatures to authenticate signers. However, unlike traditional signatures, e-signatures don’t have to be rewritten every time to validate a document and can be reused as many times as needed. When using e-signature software, the steps for signing a document electronically are usually the following:
There are numerous ways to create an electronic signature. The most straightforward method is drawing one on a piece of paper and digitizing it via scanning or by using a smartphone’s camera. It’s also worth checking out an online tool that lets everyone draw and download e-signatures for free.
For the most variety, the best way to create an e-signature is to use electronic signature software. E-signing platforms support typed and drawn e-signatures, and they often provide a mobile app for writing electronic signatures with a finger or stylus.
The electronic signature you create is inserted into a document as an image. Additionally, you can typically use text editors like Word or PDF readers, such as Acrobat Reader, to add e-signatures to documents.
To send an electronic signature with electronic signature software, follow these steps:
Adding electronic signatures to a PDF is incredibly straightforward and involves doing the following:
Note that once the file is saved, you can’t remove the e-signature.
Here are the easy steps to create an electronic signature in Word:
Google Docs requires the use of its drawing tool to add an electronic signature to documents. In order to do so, proceed as follows:
Yes, electronic signatures are legal in most parts of the world. However, e-signature legal acts may vary according to which country you’re in.
For example, the Electronic Signatures in Global and National Commerce (ESIGN) act started legalizing electronic signatures on a federal level in the U.S. in 2000. A few years later, many European countries like Switzerland also started legalizing e-signatures individually. But it was only in 2016 that the EU made e-signatures legal by introducing the eIDAS Regulation.
In addition to adhering to an e-sign act, an electronic signature is only considered legal if it’s made with the intent to sign. As such, digital documents must have a clause stating that everyone agrees to sign electronically. Moreover, every party must verify themselves with a verification method, but often a simple checkbox can suffice.
Yes, electronic signatures are accepted in all U.S. states. The Uniform Electronic Transactions Act (UETA) was introduced in 1999, and each state can choose whether to enact it or not.
Meanwhile, the ESIGN act has been in effect since 2000. It enforces e-signature legality on a federal level, meaning the states must either adopt the UETA or design a similar act.
Only New York hasn’t adopted the UETA yet. However, it has its own e-signature legality law in the form of the Electronic Signatures and Records Act (ESRA).
Yes, electronic signatures hold up in court after meeting certain criteria. The signer must prove that there was no tampering with the document after signing. In other words, the e-signature’s authenticity must be verified.
One form of verifiability is if the steps of signing can be retraced. As such, an e-signature platform’s audit trails, which reveal data such as a signer’s geolocation and IP address, validate an electronic signature.
Yes, you can notarize an electronic signature via two methods: in-person electronic notarization (IPEN) and remote online notarization (RON). IPEN happens with all signing parties and the notary present in the same room, where the signing and notarization are done electronically but not remotely. When it comes to RON, the notary uses various digital authentication methods to check the identity of signers remotely and stores all data (including screen and audio recordings) as proof.
The RON process involves the following steps:
Yes, the IRS accepts electronic signatures. In fact, it accepts all forms of e-signatures, including typed e-signatures, scanned handwritten signatures, e-signatures written with a smart device stylus, and those created with third-party e-signature software.
For the IRS to accept an electronic signature, the taxpayer must use various identity verification methods. They must also submit their tax returns and various other legal documents through an electronic return originator (ERO) that uses e-signature software. Other than that, taxpayers must have their names, Social Security numbers, addresses, and dates of birth for identification purposes.
Yes, e-signatures can be forged. It’s an extremely difficult feat to pull off, but a skilled hacker who links a computer to a signer’s email address and copies the e-signature mid-signing can do it.
Restricted signing locations can also be bypassed with a VPN, so distance won’t stop a determined cybercriminal from forging signatures. As such, it’s best to take advantage of electronic signature software with audit trails and advanced identification methods to significantly increase e-signature cybersecurity.
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