Preventing Costly Digital Signing Mistakes

Preventing Costly Digital Signing Mistakes header

As more work is saved in the cloud or other digital storage systems, ensuring the security, authenticity, and proper management of electronically signed documents has become essential. Issues like identity verification and tamper-proof signatures, if overlooked, can lead to significant legal and financial risks.

In a recent webcast, industry experts Raul Penaranda and Peter Nicolaou highlighted three major pitfalls businesses encounter with digital signing and shared actionable strategies to avoid them.

Let’s take a closer look at these challenges and the solutions they provided.

Verifying the Identity of the Signer

One of the most common issues with digital signing is the uncertainty surrounding who actually signed the document. Fraudulent signatures or impersonations can lead to severe complications. Peter shared an example from Australia where a husband signed his wife’s name to extend their mortgage without her knowledge. This breach not only caused chaos but underscored a critical need: ensuring the signer’s identity. 

Solution: Multi-Layered Identity Verification 

To address this issue, platforms like Secured Signing offer advanced verification tools: 

  • Email Passcodes: Basic verification for lower-risk documents like NDAs. 
  • SMS Authentication: Dual-device security where a unique code is sent to the signer’s phone. 
  • ID Verification: Government-issued ID (passport or driver’s license) and biometric comparisons ensure a signer’s legitimacy. 
  • Video Confirmation: The most secure option, requiring the signer to record a short video performing specific gestures (e.g., a smile or head movement) to confirm their identity. This video is stored alongside the signed document as indisputable evidence. 

Video confirmation is rock-solid evidence that the person who signed it is the correct individual,” Peter emphasized. 

By leveraging these features, businesses can mitigate identity fraud risks and enhance trust. 

Assuring Document Security: Are All Platforms Equal? 

Not all e-signature platforms are created equal. Some systems fail to secure documents after signing, allowing changes that compromise authenticity. Peter shared cases where documents were altered post-signature without notifying the parties involved – a significant breach of trust and compliance. 

Solution: Tamper-Proof Seals and Audit Trails 

With Secured Signing, once a document is signed, it is sealed with a digital marker. Any subsequent changes trigger an alert and render the document invalid. The system also offers complete audit trails that: 

  • Show who signed the document. 
  • Indicate when and where changes occurred (if any). 
  • Highlight unauthorized modifications. 

Documents signed and sealed on Secured Signing can be verified using any standard PDF reader – no special software or accounts required. 

“You’ll see a green checkmark at the top, ensuring the document is signed, sealed, and delivered without any tampering,” Peter explained. 

For businesses, this level of transparency safeguards credibility, minimizes reputational risks, and fosters trust with clients and stakeholders. 

 

ensuring the document is signed,

Managing Signed Documents Properly 

Leaving signed documents sitting in your email inbox is another common pitfall. While it may seem convenient, this practice poses two significant risks: 

  • Accessibility Issues: If key employees go on leave or leave the company, retrieving critical documents can become a major challenge. 
  • Security Risks: Email inboxes are prime targets for hackers, making them an unsafe place to store sensitive, signed documents. 

Solution: Seamless Integrations with Secure Storage 

Platforms like Secured Signing integrate seamlessly with major document management systems, ensuring signed documents are automatically stored in secure, centralized locations. These integrations include: 

  • Microsoft SharePoint 
  • OneDrive 
  • Dropbox 
  • Content Manager and Magiq (commonly used by government departments) 

Click here to take a closer look at all our other integrations.  

This means: 

  • Documents are sent directly from secure storage. 
  • Once signed, they are automatically saved back to the appropriate folder. 
  • Businesses maintain continuity, even if employees are unavailable. 

By storing signed documents in secure systems, businesses can ensure compliance, accessibility, and protection against cyber threats. 

 

Key Takeaways 

Preventing costly mistakes in digital signing requires proactive measures and robust tools. Here’s what businesses can do: 

  1. Verify Identities: Use advanced features like video confirmation and ID verification. 
  2. Ensure Security: Choose platforms with tamper-proof seals and clear audit trails. 
  3. Proper Document Management: Avoid storing signed documents in inboxes; use secure integrations with trusted systems. 

Platforms like Secured Signing make it easier than ever to address these pitfalls, providing businesses with the tools needed to sign, seal, and deliver documents confidently. 

Want to learn more? Contact us today for a demo or watch our recorded webcast to see these features in action!