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Why Wet Signatures May Not Be Enough to Stop Document Forgery

Written by VIDA | Nov 1, 2024 2:00:00 AM

We often feel safe placing a wet signature on important documents. But can a wet signature truly protect documents from forgery?

According to data from the Indonesian National Police (Polri), in 2022, cases of document and signature forgery were quite frequent, averaging seven cases per day—approximately 2,555 cases per year in Indonesia. Imagine if documents meant to secure individual or corporate rights and obligations instead became a loophole for fraud, resulting in losses.

This situation worsens as companies prefer to manage documents digitally. For instance, they might scan a signed document and send it by email. This process alone opens up the possibility of forgery through photo-editing applications.

These cases of document forgery raise an important question: Are wet signatures still sufficient to maintain document security and integrity in this digital age?

The Rising Threat of Document Forgery

Wet signatures are, by nature, easy to manipulate. Skilled forgers can easily replicate others’ signatures, and even without such expertise, photo-editing apps can offer a way to forge signatures.

Imagine the risks of a forged signature on an employment contract, tax filing, or vendor agreement. A single forged signature could cause significant financial losses and damage a company’s reputation. Without digital security, these crucial documents lack adequate protection in the digital era.

Recent industry data shows that document fraud cases increase by over 30% each year. According to VIDA, 96% of companies report experiencing forgery of some kind, with 67% of falsified documents being contracts, 69% financial documents, and 55% legal documents.

Weaknesses of Wet Signatures

1. No Proof of Signing

Unless you witness the signing in person, there is no way to verify that the signature was made by the authorized individual. Details like when, where, and who actually signed remain unknown. This makes it easy for anyone to claim or deny responsibility for signing the document.

This creates a large gap in document integrity. In cases of disputes or suspected forgery, proving the authenticity of a wet signature is challenging, often requiring lengthy and costly verification processes, or even legal action, to confirm the validity of signatures on important documents.

2. No Tamper-Proof Security

After a document is signed with a wet signature, there is no way to tell if someone alters it later. Wet signatures do not provide tamper-proof security, so unauthorized parties can modify the document’s content after the signature is added.

3. Physical Documents Are Prone to Damage

Physical documents with wet signatures are vulnerable to damage (such as tears or water exposure) and can even be lost. If a document is damaged or lost, the signature and its validity are compromised. Without automatic documentation, it’s difficult to ensure that other parties’ copies remain identical and authentic to the original.

4. Requires Physical Presence

Wet signing processes often require the physical presence of the signer, which can be a significant limitation. This poses a challenge when documents need to be completed urgently, or when the signer is in a different location. These limitations can delay processes, leading to shortcuts that sometimes result in forgery.

In reality, these processes open the door to fraud and data manipulation, posing a substantial risk to companies, especially when documents relate to critical contracts, financial transactions, or confidential information.

Use Digital Signatures

Digital signatures are a solution that addresses the limitations of wet signatures. They not only allow signing flexibility but also provide enhanced document security.

Here are the advantages of digital signatures over wet ones:

1. Digital Signatures Require ID Verification

Digital signatures protect the integrity of documents from forgery. On platforms like VIDA, users register with their ID and undergo biometric verification, creating an identity for each signature. This identity is called an Electronic Certificate, which ensures that only authorized individuals can sign documents.

2. Digital Signing Process Requires Authentication

The digital signing process is also highly secure. Before signing a digital document, the signer must perform biometric authentication (like a selfie) to confirm their identity.

3. Document Changes Are Traceable

All activity on a document is recorded in an audit log, tracking who signed, when they signed, and their location. With an audit log, every step in the signing process is transparent and traceable, providing evidence in cases of disputes.

4. Digital Signatures Can Be Verified

Third parties can verify digital signatures by visiting https://tte.kominfo.go.id/verifyPDF ensuring that the digital signature genuinely belongs to the authorized person and that the document hasn’t been altered since it was signed.

In business, document authenticity reflects a company’s commitment to security and integrity. VIDA Sign offers a digital signature solution that not only replaces wet signatures but also provides added protection against potential fraud, keeping business documents secure from forgery.

Learn more about VIDA Sign here.