What is a digital signature & why is it important?

What is a digital signature?

A digital signature is an advanced type of electronic signature that comes with enhanced security features that make it difficult to forge or manipulate. When you create a digital signature on a document, a unique number or digital fingerprint is generated through a cryptographic process. This is issued by an official authority with the purpose of guaranteeing the authenticity of the signee and their signature.

What information should a digital signature contain?

Different countries have different requirements for the type of data that digital signatures must have. But in general, digital signatures are embedded with certain information that helps identify the signee.

Why are digital signatures important?

Digital signatures are the most secure form of electronic signatures and the most trustworthy, making them ideal for sensitive legal documents and contracts. The certification and authenticity information stored within a digital signature is very difficult to manipulate or forge.

3 advantages of digital signatures

  • e-signatures are more secure than handwritten signatures and are much more difficult to forge.
  • Electronic signatures can be used to create an official record of when a document was signed. This can be helpful in cases where the authenticity of a document is called into question.
  • Digital signatures are becoming increasingly common as businesses move towards electronic transactions. In many cases, a digital signature is just as good as a physical signature and can be used to legally binding effect.

Avance will be using electronic signatures for the signing of documents. This will ensure that signing documents and tax returns will be as secure as possible. An SMS verification code will also be sent to mobile numbers.

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.