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Electronic signatures have revolutionised our approach to signing and authenticating legal documents, imparting cost-efficiency and time-savings by circumventing the need for traditional ink-and-paper methods and reliance on often unreliable postal services.
However, this digital transformation also introduces challenges, particularly in establishing digital signature security and legal validity. Key among these are the stringent requirements for specific layers of identity verification and electronic witnessing to ensure legal compliance of documents. Navigating these complexities mandates the need for a comprehensive solution that integrates identity verification, electronic signatures and electronic witnessing into a unified service.
In this article, we explore the rise of electronic signatures, the hurdles in creating a compliant and secure signing process, and the available solutions that can enhance the security of digital signatures.
The rise of electronic signatures
The first legal recognition of electronic signatures came via a publication in 1996 from the United Nations Commission on International Trade Law. It was titled the Model Law on Electronic Commerce, and directly outlined the requirements for signatures from data messages to be considered valid within the UN:
“(as long as) a method is used to identify that person and to indicate that person’s approval of the information contained in the data message; and that method is as reliable as was appropriate for the purpose for which the data message was generated or communicated, in the light of all the circumstances, including any relevant agreement.”
This was shortly followed by the 1999 Uniform Electronic Transaction Act, which was a uniform state law in the US that brought national consistency to the reception and application of electronic signing. It defined it as an “electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.” This was then reinforced by the 2000 ESign act that further defines the legal acceptance of electronic signatures in US law.
In the EU, the electronic Identification, Authentication and Trust Services (eIDAS) Regulation was introduced in 2014 to establish the mutual recognition of electronic identification and signatures across member states. Its purpose was to enhance the security, interoperability, and acceptance of electronic transactions within the EU to take advantage of the advantageous features it offered.
How electronic signatures have elevated document signing security
- Cost, time and convenience - e-Signatures provide the opportunity to authenticate identity and authorise legal documentation at any given location. This provides efficiency opportunities in terms of the cost and time related to the signing and administrative tasks tied to legal documents, as well as being convenient for signatories that are in remote locations.
- Mitigate risk - When it comes to legal documentation that traditionally relied on postal services, e-signing eliminates this reliance and associated risks, adding another layer of security for digital signatures.
- Enhanced security - Electronic platforms provide enhanced security features when compared to their physical counterparts. They utilise features such as encryption, digital certificates, and audit trails to provide strong protection against fraudulent activities and enhance the validity of legal documentation.
What are the legal intricacies of electronic signatures?
Electronic signatures are recognised as a legal form of execution for a wide range of legal documents, meaning that they hold validity if they are raised in court. That said, there are a handful of legal situations where e-signatures are an insufficient form of execution, which can often vary between regions and jurisdictions. In the UK, legal documentation used for wills, various land registry documentation as well as certain court documentation must be signed via physical ink. Because of this, it is important to have a holistic and clear understanding of the legal variations between different document execution situations.
An additional intricacy of electronic signatures is the integration of a witness. Some documentation such as deeds require a witness to be legally admissible, whereas others request a witness to reinforce legal validity. In terms of electronic signatures, witnessing via an electronic platform has become a topic of contention as a result of the recent pandemic; people were using video call platforms to perform the witnessing of electronic documentation, which is not considered a valid form of e-witnessing. To be legally valid, witnesses must be physically present (and prove that they were) when the signatory is signing via an electronic platform. The witness must then confirm their identity to bring sufficient legal validity to the documentation.
The role of integrated platforms in enhancing digital signature security
Many of the factors surrounding electronic signatures, witnessing and legal documentation comes in the form of different specialised systems and platforms. One service will perform identity verification, another will host electronic signature capabilities, and yet another will be used for electronic witnessing - a process which creates needless complexity where security and legal validity can suffer.
HM Land Registry has also recognised the need for a unified approach to e-signing and online identity verification to reach their goal of a fully digitised property market; they state:
“We need to move away from viewing identity and electronic signatures as separate solutions with different outcomes. The security of an electronic signature comes from the technology that supports it, and, importantly, the standard of identity verification it is based (on).”
They go on to discuss that the future of digital signatures is a shift away from disparate systems. Fortunately, this “future” is already here. Holistic identity verification platforms, like Bonafidee, are capable of integrating all these processes, simplifying workflows while simultaneously enhancing the security and legal validity of electronic signatures.
Bonafidee’s platform provides seamless integration of identity verification, electronic signature and data capture, and complete electronic witnessing capabilities. The user journey is refined into a simple and effective process that is completely configurable, allowing you to integrate an array of identity verification options specific documentation verification and advanced e-forms. At each individual stage, security and legal compliance is assured so that you can support the features of electronic signatures without the risk.
Embrace the future of secure digital signatures with a secure and compliant electronic verification platform - download our product guide to learn more.
