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In this episode, we cover electronic signature questions.
Electronic Signature Questions
Which state law applies when you have people in different states? Do the DINs change anything? How do you check that a client matches the ID provided? And what does an audio-visual link look like?
These are just some of the questions Jennifer Lauchlan and Marcus Hannah of Docusign in Australia will cover with you in this episode.
Here is what we learned but please listen in as Jennifer and Marcus explain all this much better than we ever could.
To listen while you drive, walk or work, just access the episode through a free podcast app on your mobile phone.
Electronic Signature Questions
Here are some of the questions we cover.
How to Check Who Signed?
The completion certificate captures your correct identity and role, as well as the authentication of your ID. However, the document does not include information about your capacity or authority to sign unless explicitly stated.
How To Check ID?
There are various ways to check identification using electronic technology:
1 – Email address: Compare entered address to the database
2 – Access code: Get signers to enter a one-time passcode
3 – Phone call: Get signers to call and enter a code
4 – SMS: Get signers to enter a one-time passcode sent via SMS
5- Knowledge-based: Get signers to answer specific questions.
6 – Social ID checks: YouTube code for example
7 – Federal ID: Passport number for example
8 – State and other government ID: Driver’s license for example
9 – Other portal login credentials: bank credentials
10 – Biometric verification
Do you have the capacity to sign?
The capacity to sign is difficult to prove both manually and electronically.
Banks are under pressure to ensure vulnerable communities are not signing under duress. That’s where recording the signing via Zoom becomes helpful evidence.
Do you have the authority to sign?
The authority to sign is not part of the signing process. That needs to be established before or after. It’s up to the sender to decide who is the appropriate signer.
In what role do you sign?
Most signing apps have a workflow and these can be templated and named.
How do you sign?
The amendments to the law give you more options. It doesn’t say you have to sign electronically. It just says you can.
With electronic signing you have the option of drawing your signature say on a trackpad or uploading a photo of your handwritten signature or adopting a computer font-generated signature.
All have equal weight under the law.
Will Fraud Go Down?
Nothing is ever 100% protected from fraud. Never say never. But the nature of fraud is changing with digital signatures.
An electronic signature itself doesn’t protect against fraud. It’s the authentication methods that you configure at the start of the signing ceremony that provide that verification of the identity of the signer.
And the completion certificate at the end provides the court-admissible audit trail.
Not all eSignatures are created equal. Some solutions offer the ability to save a signature without authentication and that is not ideal. So always look at how the ID of the signer was authenticated and how it was recorded in the audit trail.
And Overseas?
The EU is highly regulated when it comes to electronic signing. They have rules that require even more rigorous Identification verification through the use of standards-based or qualified electronic signatures for certain types of documents.
The UK uses witnessing like Australia. And in the US they use notaries.
Summary
These are just some of the questions we cover in this episode. Please listen in since there is a lot more in this episode about electronic signatures.
MORE
Legislative Framework of Electronic Signatures
Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.
Last Updated on 13 July 2023
Tax Talks spoke to Jennifer Lauchlan and Marcus Hannah - Investment manager and Senior Legal Counsel at Docusign - for more details.
