Digital signature fraud occurs when someone unlawfully obtains or uses your electronic signature as a means of approving legal contracts, purchases, or other documents without your permission. As such, if your digital signature was fraudulently used, understanding the immediate steps you should take is critical to protecting your finances, identity, and legal rights. Our firm recognizes how overwhelming digital signature fraud can feel. Fortunately, our firm can help. Read on and reach out to our skilled California digital signature fraud lawyer today to discuss your options. Our legal team is just one call away. We are on your side.
What Is Digital Signature Fraud?
Digital signature fraud is a form of identity theft that occurs when someone uses another person’s digital signature or other form of encrypted signing authorization without permission. Unfortunately, these credentials are often compromised during malware attacks, phishing schemes, compromised devices, and other forms of hacking.
It’s important to understand that digital signatures are becoming more common due to the ease with which important documents can be signed with these credentials. These signatures are commonly used in:
- Real estate transactions
- Online banking documents
- Business contracts
- Government forms
- Loan documents
- Account authorizations
While often secure, electronic signature fraud can lead to serious financial complications for the victim, as these signatures are legally binding.
Common Examples of Digital Signature Fraud
- Signing contracts without prior authorization
- Electronically approving financial documents
- Opening accounts using stolen digital signatures
- Electronically altering signed documents
- Submitting forged electronic signatures
- Utilizing malware to compromise digital signatures
- Using stolen login credentials to access online signing platforms
Why Digital Signature Fraud Is Becoming More Common
As mentioned, the use of digital signatures as a valid form of credentials is becoming increasingly common. Unfortunately, cybercriminals often target these platforms because:
- Remote transactions occur quickly
- Consumers frequently reuse passwords, making access to these websites easier
- Victims may not immediately discover instances of fraud
Unfortunately, as reported by the FTC, identity theft and fraud are consistently the most common consumer complaints filed within the United States, including San Luis Obispo County and across California. As technology continues to grow and evolve, thieves also find ways to utilize these systems for nefarious purposes.
How Does a Digital Signature Work?
A digital signature is a type of electronic signature that functions as a digital fingerprint because each digital signature is intended to be completely unique. A digital signature is a mathematical algorithm that creates two long numbers, which are known as keys. One of these keys is private, while the other is shared.
If someone signs an electronic document, it will create a digital signature, which essentially links the signature to the document through encrypted digital authentication technology.
After an individual signs a document, the person or entity obtaining the document will also acquire a copy of the person’s public key, and if the public key does not decrypt the signature, it implies that:
- The signature is not authentic
- The document has been manipulated
- The signature was used fraudulently after the document was signed
How Do Digital Signatures Differ from Standard Electronic Signatures?
While the terms digital signature and electronic signature sound similar and are often used interchangeably, it’s important to understand that these are not always the same.
Key Differences
- Electronic signatures can include typed names, checking a box, or uploading a copy of your signature
- Digital signatures utilize encryption technology
- Digital signatures typically provide additional protection against fraud
- Many financial institutions and businesses rely on digital signatures to verify identity
- Digital signatures can create audit trails, showing the activity on the document through timestamps
What Can Happen if Someone Steals My Digital Signature?
In the event that an individual obtains your digital signature, either through malware on your computer or in another way, they can then use this signature to sign off on documents without your permission. Your digital signature can be used to:
- Make purchases
- Sell property
- Open accounts
- Transfer funds
- Access sensitive personal and financial information
As the signature is digital and not on paper, the damage can spread relatively fast.
Because of this, it is critical that you always read any digital contract or document in its entirety before signing, just as with any other paper document or contract. Without reading the fine print, you could be agreeing to terms you did not intend to accept.
Warning Signs of Digital Signature Fraud
- Notifications about unfamiliar agreements or documents
- Collection notices regarding debts you don’t recognize
- Password reset emails you didn’t request
- Alerts about electronically signed documents
- Inability to access online accounts
- Unexpected financial transactions
What Steps Should I Take if My Digital Signature Was Stolen in San Luis Obispo County?
If you have reason to believe your digital signature was compromised, it’s important to understand the steps you should take to secure your financial accounts and personal information.
You should also understand that consumers in San Luis Obispo County and throughout California have a number of protections at both the state and federal levels. As such, working with an experienced attorney during these difficult times is critical.
Immediate Steps to Take After Digital Signature Fraud
- Change all passwords for financial accounts and email
- Place a credit freeze or fraud alert on your credit report
- Dispute unauthorized transactions
- Enable two-factor authentication when possible
- Scan devices for malware
- File an identity theft report with the Federal Trade Commission
- Continue to monitor your credit
Contact a California Consumer Lawyer Today
If your digital signature has been stolen or was otherwise involved in any sort of fraudulent activity, it is in your best interest to hire the services of an experienced California identity theft victim lawyer at Loker Law, APC right away. With a qualified attorney on your side, you can feel confident knowing that you will be able to recover what you lost after your signature was stolen. We are just one call away. Contact Loker Law, APC today to schedule your initial consultation with our experienced legal team.
