For a while now, the legitimacy and security of online business transactions and operations have been a big worry in e-commerce with the increasing use of the Internet. Here, a digital signature is very important and plays a critical role.
Faster online transactions are made possible with digital signatures, which also assist in ensuring the validity and integrity of digital papers, messages, and business operations. They are used to verify the identity of the signer and make sure that the message or document has not been altered or meddled with.
Digital signatures are safer than the traditional methods of getting vital wet signatures and are just the electronic match of a handwritten signature.
Discover What a Digital Signature Is
A digital signature verifies the document’s authenticity and provides important information about the sender, date and time of completion and submission of the document, and signatories. It offers validation and verification without requiring access to the signed document or item.
A digital signature is a kind of electronic signature used to confirm the authenticity and dependability of papers that are sent digitally online. With it, you can verify important messages or documents using a digital identity or digital signature. Further, it also helps you determine whether the document or message sent is original or not by ensuring that it has not been illegally accessed or altered while in transit.
Using a mathematical algorithm, a unique code is generated and affixed to the finished document, akin to a digital signature. This code is unique to the signature’s owner and cannot be altered or forged. You can use this secure digital signing option in place of acceptable wet signatures.
It enables you to verify that a document has not been altered or tampered with once an electronic signature has been affixed to it. Moreover, you can also confirm the signatory’s authenticity using the electronic signature. Today, most banks, like DBS, offer you the facility of signing your important documents digitally and allowing the parties to the deal to receive the final copies of the agreement through email.
Know How a Digital Signature Works
Digital signatures are a reliable way for parties engaged in online transactions to build confidence and security. How do they work?
In an electronic commerce transaction, digital signatures serve to verify the signatory’s identity. By confirming that the transaction is being carried out with the intended party, this verification helps to reduce the possibility of impersonation or fraud.
Maintaining data integrity is one of the main functions of a certificate. They ensure that the message’s content or document is preserved throughout transmission. The digital signature will become invalid upon any alteration to the document, thereby warning the recipient of possible attempts at tampering.
With non-repudiation, a digital signature prevents the signatory from denying their participation in the deal or claiming that the document was changed after signing. This provides a solid legal foundation and settles any disagreements that can arise during online transactions.
Digital signatures are known to use digital certificates and public or private keys for the highest level of security. The kind of digital signature you select should be based on the requirements of your business. Here are some steps to make use of a leading bank’s digital signature service:
- Step 1: Your bank will send you a highly secured one-time email link to the authorised signatory.
- Step 2: Next, it will send a secure PIN for one-time access by SMS to each authorised signatory.
- Step 3: You can view and digitally sign the document after the email and SMS verification processes.
- Step 4: An email with a document duly completed and electronically signed is sent to the applicant and permitted signatories, with a copy for the bank.
Digital signatures are essential to establish trust, legal legitimacy, and security in commercial transactions. A digital signature helps create a more secure and effective online business environment, providing overall security, data integrity and legitimacy. Using digital signatures helps companies increase operational efficiency and consumer confidence.