E-signatures and PDF management software vendor Nitro has conceded that fraudsters have in some cases taken advantage of e-transaction practices, pointing out that organisations should be making more use of fully compliant identity and verification capabilities.
In a blog post, the Nitro team explained that identity verification should be considered an “essential step” in e-signature processes, including with its own eSign offerings.
“This type of fraud has become easier to commit partly because the pandemic forced a shift from in-person transactions, where proper identification must be shown and verified by people, to fully electronic transactions,” they wrote.
“Now, even with the capability to do business in person, many organisations have elected to keep the flexibility and convenience of electronic transactions and eSigning.”
Prosecuting fraud can be challenging, expensive and time consuming but can often be prevented, using secure processes, identity verification, and trusted technologies.
“Industries and organisations at high risk for fraud need more than a simple e-signature solution. A high-trust solution is required that integrates and verifies identities via approved electronic ID schemes and tamper-proof public key infrastructure (PKI) technology,” the team said.
Many industries could be at risk of “doing business” unawares with criminals – with sectors targeted including financial services, real estate and more.
“When you do business with any person or company, you need to know without a doubt they are who they say they are. Criminals often commit fraud by either assuming another person’s identity or creating an identity for a person who doesn’t exist,” they pointed out.
“Organisations involved in a fraudulent business deal typically lose both money and customer trust. Additionally, the organisation must take time to resolve the fraud and possibly prosecute the criminals.”
For documents to qualify as “high trust”, they should be created using a software platform with best-in-class identification services that verify identities using government-compliant and approved methods, or perhaps authentication that involves trusted third parties, such as bank and telecommunications companies.
Platforms should be difficult to tamper with and offer multiple levels of identity verification, including multiple signature types and verification options aligned to the specific trust level needed for both the signer and the document. If possible, they should also be easy to use and approved by the customer.
For example, a loan application submitted by an unknown person on the internet would typically need a higher level of identity verification than renewing a current employee contract, according to the Nitro team.
E-signature platforms with cryptographic seals make it harder to alter the information in the document after signing and can also help track all interactions, such as signatures, transfers and modifications, with a built-in audit trail.
Integrated ID verification can help avoid risks introduced by third-party apps or services, the team said.
“Nitro is committed to providing a high-trust electronic signature solution that helps you prevent fraud on many levels. Nitro Sign Premium connects to various public identity initiatives around the world,” they said.
( Photo by Alesia Gritcuk on Unsplash )
