9 Common Myths About Electronic Signatures (Debunked)

Electronic signatures, often shortened to e-signatures, have become an essential part of modern commerce. From remote work contracts to healthcare consent forms and cross-border real estate deals, billions of documents are now signed electronically every year. 

Although electronic signatures have been recognized by law for decades, many myths persist about their legal validity, security, and usability. This blog busts the most common misconceptions about e-signatures with facts, drawing on official legal texts, technology experts, and up-to-date statistics.

Myth 1: “Electronic signatures are not legally binding.”

The most persistent electronic signature myth is that an electronic signature is somehow less binding than a handwritten one. In the United States, this view has been outdated for more than two decades. The federal Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) form a two-tier framework that applies nationwide. 

These laws explicitly state that an electronic signature cannot be denied legal effect or enforceability solely because it is in electronic form.

Under ESIGN and UETA, a party seeking to enforce an e-signature must show that the signer intended to sign, that the signature can be attributed to the signer, that the signature is logically attached to the record, and that the signer had access to a copy of the signed record. 

Provided these requirements are met, an electronic signature has the same legal status as a pen-and-ink signature.

Across the Atlantic, the European Union’s eIDAS Regulation (Regulation (EU) No 910/2014) provides similar assurance. It establishes that every form of electronic signature is admissible as evidence in EU courts and “shall not be denied legal effect solely because it is in electronic form”. 

Like ESIGN, eIDAS sets out minimum requirements for proving intent and associating a signature with a record, but it does not mandate a specific technology.

E-sign fact: Electronic signatures are enforceable worldwide where enabling statutes exist. Notably, many countries in Asia, the Middle East, and Africa have adopted laws similar to ESIGN or eIDAS that recognize electronic signatures in commerce. That means contracts executed electronically are binding so long as local exceptions are observed.

Myth 2: “Only specialized digital signatures count”

Another common misunderstanding conflates digital signatures with all electronic signatures. An electronic signature is a broad umbrella covering any electronic sound, symbol, or process attached to a record with the intent to sign. 

This includes typing a name, clicking an “I accept” button, or using a stylus to scribble a signature on a tablet. Under eIDAS, this broad category simply requires data that is attached to or logically associated with other data and used by the signatory.

Digital signatures are a subset of electronic signatures that employ public-key infrastructure (PKI) to authenticate a signer and secure a document. Sectigo, a trusted certificate authority, notes that a digital signature

“authenticates the identity of the signer and ensures electronically transmitted documents and digital messages have not been forged or tampered with”. 

These signatures use PKI certificates issued by trusted providers to create a unique cryptographic hash of the document. The signer’s private key encrypts the hash; the recipient uses the public key to verify it. If the hash values differ, any alteration is immediately detectable.

EIDAS distinguishes among three levels of electronic signature:

• Basic electronic signature: The broad category of any data used to sign. It covers everyday actions like typing a name or clicking a consent box, and is legally recognized, provided intent and association can be proven.
• Advanced electronic signature (AES): Must be uniquely linked to and capable of identifying the signer, created using signature-creation data under their sole control, and linked to the signed data such that any subsequent change is detectable.
• Qualified electronic signature (QES): An AES backed by a qualified certificate issued by a trust service provider and verified under strict EU standards. A QES has special status in EU member states as the legal equivalent of a handwritten signature.

While a QES offers the highest assurance, most everyday business transactions only require a basic or advanced electronic signature. 

E-sign fact: a contract can be validly executed using a typed name, a scanned signature image, or a digital signature; the choice depends on risk appetite, regulatory requirements, and customer experience.

Myth 3: “Electronic signatures aren’t secure.”

Critics often assert that e-signatures can be easily forged or altered. However, modern e-signature platforms incorporate multiple layers of security:

• Cryptographic technology: Digital signatures rely on asymmetric encryption, generating a unique hash of the document that is encrypted with the signer’s private key. The recipient uses the corresponding public key to decrypt and compare the hash. If any change occurs, the signature is rendered invalid. This mechanism ensures both document integrity and signer authenticity.
• Identity verification: Digital signature certificates are issued by trusted certificate authorities after verifying the signer’s identity. Sectigo notes that this process “ensures identity authentication and document integrity by encrypted binding of the signature to the document”. Lower-level signatures often include email, SMS, or two-factor authentication to confirm identity.
• Audit trails and timestamps: E-signature services maintain detailed logs that record when and how a document was signed, the signer’s IP address, and any authentication steps completed. This audit trail provides stronger evidence than most handwritten signatures, which rarely capture such metadata.
• Tamper detection: The cryptographic hash ensures that any change to the signed document alters the hash value, revealing tampering.

In many ways, electronic signatures offer greater security than handwritten signatures, which can be forged with a skilled pen or scanned and copied. The combination of encryption, identity verification, time stamps, and audit logs makes fraudulent alteration far more difficult.

Myth 4: “E-signatures are hard to use or require special software.”

Some organizations resist adopting e-signatures out of fear that the technology is complex or expensive. Yet most e-signature platforms are designed for ease of use. Generating and applying a digital signature is easy and straightforward for the average user and for enterprises to adopt. 

Many widely used applications (for example, Adobe Acrobat, Microsoft 365, and numerous web-based services) include built-in signing functionality. Users simply upload a document, enter the signers’ email addresses, and guide them through a point-and-click signing process.

Recent statistics illustrate how mainstream the technology has become:

• MSB Docs reports that global e-signature transactions jumped from 198 million to 4,754 million within five years.
• The same source notes that US businesses waste around $8 billion per year on paper management. Adopting e-signatures reduces document handling expenses by approximately 85% and cuts shipping costs by 80%.
• According to MSB Docs, 65% of companies that still require physical signatures say it adds an entire day to their processes, whereas paperless organizations reduce processing errors by 90%.
• A survey found that 95% of businesses are either already using or planning to use e-signatures. Nearly half of the companies that use e-signatures do so to improve employee experience.

These figures demonstrate that modern e-signature tools are not only easy to implement but also deliver significant efficiency gains. Many solutions offer free tiers or pay-per-use plans, making them accessible to small businesses and individuals.

Myth 5: “E-signatures are only for big companies and simple contracts”

This myth combines two misconceptions: that only large enterprises can afford e-signature technology, and that it’s limited to basic documents like NDAs. In reality, e-signatures span a vast range of industries and contract types:

• The COVID-19 pandemic accelerated digital transformation. MSB Docs notes that industries ranging from healthcare and banking to real estate and staffing have embraced e-signatures. Use cases include onboarding patients, approving loan applications, finalizing sales agreements, and registering new hires.
• EIDAS covers both business and consumer transactions across personal property, services, and real property. E-signatures are legally recognized for agreements as diverse as insurance policies, software licenses, and procurement contracts.
• Modern e-signature platforms support multi-signer workflows, sequential or parallel signing, and integration with document management systems. They also offer features such as form filling, payment collection, and identity verification.

While certain documents remain excluded or require special handling (see Myth 6 below), e-signatures are not limited to simple contracts. Small businesses and independent professionals can benefit from the same technology used by multinational corporations.

Myth 6: “Everything can be signed electronically”

Although electronic signatures are widely accepted, there are important exceptions. The ESIGN Act expressly excludes certain document categories, and many state and national laws impose similar restrictions. According to LegalZoom, electronic signatures are not valid for:

• Wills, testamentary trusts, and codicils.
• Adoption, divorce, and other family-law papers.
• Many contracts are governed by the Uniform Commercial Code (such as negotiable instruments).
• Court orders, briefs, and other official court documents.
• Notices of termination of utility services, default or foreclosure notices, and the cancellation of health or life insurance.
• Product recall notices and documentation accompanying the transport of hazardous materials.

Local laws may add further exceptions. For example, some jurisdictions still require ink signatures for marriage certificates or real estate deeds. When dealing with regulated sectors, always verify whether electronic signatures are permitted.

Myth 7: “Electronic signatures aren’t recognized across borders”

As business becomes increasingly global, companies worry that an electronic contract valid in one country may not be recognized elsewhere. The truth is more encouraging.

• The eIDAS Regulation harmonizes electronic signature law across all EU member states and makes electronic signatures admissible in EU courts. A business in France can accept a contract signed electronically in Germany and enforce it.
• The ESIGN Act applies to interstate commerce in the United States, and UETA has been adopted (with minor variations) by 49 states, Washington, D.C., and Puerto Rico. That means a contract signed electronically in California is enforceable in New York.
• Many other countries, including Canada, Australia, Singapore, the United Arab Emirates, and Brazil, have adopted laws modeled on ESIGN or eIDAS. These frameworks generally recognize foreign electronic signatures, provided they meet local standards.

While cross-border transactions require careful compliance, electronic signatures are widely accepted internationally. Businesses conducting high-risk transactions may choose to use advanced or qualified signatures or to engage a trust service provider familiar with target jurisdictions.

Myth 8: “E-signatures can be easily forged”

Some skeptics argue that electronic signatures, particularly scanned images of handwritten signatures, can be copied and pasted onto other documents. This ignores the cryptographic and procedural safeguards built into reputable e-signature services:

• Unique key pairs: Digital signatures generate a hash of the document and encrypt it with the signer’s private key. Without access to that private key, an attacker cannot create a valid signature.
• Tamper-evident seals: Any change to the signed document alters the hash, causing verification to fail. This means that even if someone copied an image of your signature, it would not match the underlying cryptographic signature.
• Authentication and audit trails: E-signature platforms require email or multifactor authentication and record the date, time, IP address, and device of each signer. These details make impersonation significantly harder than scribbling someone else’s name.

Forging an electronic signature would require compromising the signer’s private key and bypassing platform authentication, a far higher bar than forging a wet signature. In court, a digitally signed record coupled with an audit trail often provides stronger evidence than a paper signature.

Myth 9: “Wet signatures are more secure than electronic signatures”

Traditional signatures have an air of familiarity, but they are surprisingly easy to reproduce. Skilled forgers can mimic handwriting, and a scanned signature can be pasted onto multiple documents. Paper documents can be altered, lost, or destroyed without leaving a trace.

By contrast, e-signatures embed security measures at every stage:

• The signer’s identity is verified (sometimes through government-issued IDs or biometric checks).
• Each signature is time-stamped and associated with a unique digital certificate.
• The signed record is stored securely so that any modification breaks the cryptographic seal, triggering a mismatch during verification.

E-sign fact: far from being less secure, electronic signatures often provide a higher evidentiary value. Courts are increasingly receptive to digital evidence because the underlying technology offers clear proof of integrity and authorship.

Bringing it all together

Electronic signatures have become an indispensable tool for modern business, yet myths about their legality, security, and practicality persist. 

After debunking most of the myths, we can confidently say that  electronic signatures provide a secure, efficient, and legally robust way to conclude agreements. By understanding the facts and dispelling myths, organizations and individuals can confidently embrace e-signature technology and reap the benefits of a faster, greener, and more trustworthy way of doing business. Wesignature will continue to dispel such myths with its secure, efficient, and robust approach to agreements.