E-Signature Security: A Primer for Agents

Let's think about your signature for a minute. Not just any signature, but the old-fashioned pen-and-ink kind. There's no other signature like it in the world; it's not only unique to you, it's different each time you scrawl it onto paper. So it may seem counter-intuitive that electronic signatures are touted as "more secure" than handwritten ones. How can that be?

Yes, your signature is a unique and special snowflake. That's precisely the problem. Here's why:

• It's Unique - Your handwritten signature is one-of-a-kind. It varies each time you write it. If a signature is legally challenged, this variability can be an issue.
• Unknown to Other Parties - Because it's unique, no one knows if a signature is really yours. Therefore, handwriting experts can only establish the 'likelihood' that a signature belongs to someone, but can't establish certainty.
• Easy to Falsify - Handwritten signatures are easy to copycat--and therefore easy to forge.
• Doesn't indicate document integrity - Documents can be altered just as easily as a signature can be forged. With paper, there's no surefire way of knowing if underlying document has been modified.

Okay, you may be thinking, so ink signatures have weaknesses. But does that necessarily make electronic signatures better? After all, many banks have been slow to adopt e-signature technology and some still prefer traditional "wet" signatures.

It makes sense if you think about it. It's one thing for a buyer and a seller to enter into an agreement, but as the third party underwriting a sale, banks are the ones taking the financial risk. It's understandable that they want to be absolutely sure a signature is valid and can be upheld in case of a legal challenge.