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eSigning High-Value Documents - Prioritizing Security In The Digital Era

Picture of Dawn Illing Dawn Illing : 23. November 2022

Digital Signatures eIDAS digital identity QES
eSigning High-Value Documents - Prioritizing Security In The Digital Era

As certain industries are moving ahead with digital transformation projects, online signing processes are a step forward in optimizing business practices.

Contracts and agreements are the foundation of business. However, what is a signing workflow? How does it work? And how efficient and effective can it be?

eSignature workflows improve the overall consistency of document signing processes. They route the document automatically, assign tasks, and track their progress. So, given the many diverse signing processes in each line of business and channel, what is required to build eSignatures as a shared service across the organization?

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What is the starting point of your workflow for electronic signatures? Some examples are:

  • High-value commercial contracts and tenders: at times these are subject to amendment as well as additional appendices
  • Patent applications - signatures and filing, transfer of ownership 
  • Cross-border agreements and contracts
  • Legal: Increase compliance, centralize contract management, and gain visibility and control over contracts
  • HR: Remote hiring, timely employee onboarding, and a straightforward employee exit process
  • Procurement: Speed up the purchase order process
  • Sales: Reduce the time it takes to close deals and speed up the process.
  • Finance: Timely invoice dispatch

Certain industries have a necessity to protect confidential information and certain business sectors have a strong requirement to use them. 

For the above-mentioned workflow events, a Qualified Electronic Signature (QES) should be considered.

Here we detail three main eSignature standards and typical use cases;

eSignature Standard

Simple

Advanced (AES)

Qualified (QES)

Transaction Risk

Low

Medium

High

Description

These are the most general and basic forms of electronic signatures which cover the broad spectrum of all electronic signatures.

Simple eSignatures do not need any form of identification verification from the signer, and the individual receiving the document is responsible for having trust in these signatures.

Advanced Electronic Signatures signatures, unlike simple electronic signatures, require a level of identification verification. They are based on certificates that uniquely link the eSignature to the document or transaction through a series of authentication processes that give it legitimacy and validity. 

Qualified Electronic Signatures are similar to advanced electronic signature standards.

The regulation requires a qualified certificate stored on a qualified signature creation device and must be issued and managed by a QTSP (Qualified Trust Service Provider), and it attests to the authenticity of the electronic signature to serve as proof of the signatory.

Typical Uses

Standard contracts and agreements, all general consent forms

Agreements, legal documents, online bank data and funds transfers

Commercial and residency transactions, calls for tender, business documents

 

 

How The Signing Process Works

To sign a document, a signatory must be in a specific setting (such as on a computer or mobile device) and have access to signing functionalities made of:

  1. the signature creation application
  2. the signature creation device that:
  • holds the signature creation data (private key);
  • shall be able to authenticate the signatory (to guarantee his/her sole control of the private key)
  • shall be able to authenticate the signatory (to guarantee his/her sole control of the private key)
  • computes the signature (using the signer's signature creation data)
  • may hold the signing certificate (or indistinguishable references to it)

What Challenges Does A Digital Signature Solve?

eIDAS certified Remote Signing Platform for a Major Trust Service Provider

One of the most difficult challenges in the digital world is that the people involved rarely know each other - not in the sense of two people meeting to reach an agreement, such as signing a contract. Many "meetings" take place online - knowing each other through a Skype session or an email exchange. The latter, in particular, is easily falsifiable.

The dilemma is that it is now considered unacceptable for businesses to inconvenience their clients by requiring them to sign documents in person in our increasingly digital society. Particularly if they’re not even in the same country! A digital signature solution to this problem is provided by electronic signing platforms.

Providing users with access to a highly secure electronic signature platform is one of the best ways to win client trust. When asked to sign, they click to legally execute emails when prompted. They automatically receive an official copy with all required signature requests after everyone has signed.

Conclusion

The Qualified Electronic Signature (QES) is regarded as the most complete and secure method to digitally prove the identity of a subject and the acceptance of the content of a document.

A Qualified Electronic Signature is an e-Signature created with a qualified certificate to identify the signer. This qualified electronic signature certificate comprises of an electronic document that links the signer's data and the validation of the QES signature to the irrefutable identification of the subject. 

The qualified certificate means that the qualified electronic signature would not require any form of expert evidence in a court of law in the event of a dispute since it is considered a piece of totally valid evidence with the highest level of legitimacy, originality and inviolability required.

Cryptomathic Signer is a remote QES solution, incorporating Cryptomathic's certified Qualified Signature Creation Device (QSCD), which abstracts all the complexity and helps all industries to provide a smooth digital signing experience to their clients.

 

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