Minimizing the Risks of Using Digital Signatures

Digital transactions are becoming more commonplace in businesses today. Digital signatures are supposed to validate the authenticity of documents and  also the fact that these documents remain unaltered.

This presents new problems, though, when it comes to validating the authenticity of documents that are procured and/or shared via cloud-based solutions or over the World Wide Web. In addition, forgery is not just a problem with paper checks, it can also be a problem with electronically signed documents. Security and verification risks are just two of the risks businesses face when utilizing digital signatures on electronic records.

Security Risks

The invention of digital signatures hasn’t led to a decrease in the efforts of hackers. Nor has it served to reduce, much less eliminate, the proliferation of cyber-attacks on the web every day.

The good news is that this continued activity on the part of hackers and attackers has led to equally vigilant action by those seeking to protect these digital signatures. Businesses today can invest in services dedicated to protecting their interests when it comes to cyber-security, documentation, and attacks by outside forces.

If digital signatures are not secure, would be hackers can create fake signatures and use them to their advantage. Or, they can misuse authentic signatures to potentially harm the organization.

To thwart this, in some cases, it is necessary to use “hardware security modules” (HSMs). These modules serve to protect the process of digital signing with the latest security methods. Some services go beyond the minimum requirements and offer additional benefits or products such as those that timestamp entries.


Just as a qualified forensics expert can identify handwriting forgeries to help safeguard against crimes related to physical signatures, a qualified computer forensics expert can identify improper use of digital signatures. Unfortunately, this is action often taken after the fact and does little to restore confidence or peace of mind.

The day of the widespread use and acceptance of digital signatures is here. Many countries are beginning to create and adopt policies regarding these signatures and the tides show no signs of slowing, much less stopping. As more countries come on board, the risks grow for those who are unprepared.

Protecting Against Digital Signature Security and Verification Fraud

Don’t get caught off guard when bad things happen. Protect yourself and your business interests now with an adequate business insurance, including a cyber liability insurance policy. Discuss your options with your insurance agent today to find out what the best coverage options are for your business and the way you operate on the Internet.