There are a number of popular fallacies around electronic signature solutions. The majority of these misconceptions come from a general lack of understand on how the esign process works and why we have a need for these solutions today. By getting the right information and locating a solution that is well developed and follows the correct standards and regulations, you can greatly benefit from the solutions at home and within your organization. I will now address some of the common misunderstanding’s and fallacies about electronic signature (esign) solutions.
1. Electronic signatures are not legal or legally binding.
The U.S. Code defines an electronic signature for the purpose of US law as “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.” This definition is reiterated in the U.S. ESign Act of 2000 restating the absolute legal nature of electronic signatures.
2. Electronic signature solutions are unsafe and insecure.
It is true that there are some risks involved with electronic signature solutions but the reality is there are risks around any electronic transmitted solution. Thousands of files are transmitted by fax and email on a daily basis and what is the security around those tools? Confidential faxes in a large organization can be picked up by anyone who happens to pass by the machine, or by simply dialing the wrong number on the machine the fax can be sent to a recipient that wasn’t intended to receive the fax. Emails are quite similar in the sense that they are hacked all the time by malicious parties.
While there is always a risk in any file transmission, in many ways some electronic signature solutions actually add layers of security to file and document transmissions. Now not every esign solutions is equal, and some really should be avoided all together. Some solutions like eSigneXpress add layers of security by hosting your documents in the cloud. This ensures a secure portal with encrypted credentials before gaining access. Once inside the files are then communicated to other through their own encrypted portal.
By understanding the benefits that can come from esign solutions, businesses can run paperless and individuals can be protected against the fraudulent activities involved with some of the more common standards of today.