4 Common Risks Associated With Using Electronic Signatures

Electronic signature risks continue to be an important consideration as digital signing becomes a core part of modern business operations. Today, electronic signatures are no longer an alternative—they are the default method for executing agreements across industries.

While electronic signatures help organizations move faster, reduce paperwork, and improve customer experience, improper implementation can still expose businesses to risks such as fraud, unauthorized signing, data breaches, and regulatory non-compliance.

That’s why having well-defined internal processes, verified signatory authority, and a trusted eSignature platform is essential. When implemented correctly, electronic signatures remain legally enforceable, secure, and scalable—while minimizing operational and compliance risks.

In this article, we explain what electronic signatures are, why risk awareness matters, and the four most common electronic signature risks organizations should understand in 2026.

What Do You Mean by an Electronic Signature?

An electronic signature is a legally recognized method of signing digital documents or approving electronic transactions. It can take several forms, including a typed name, a drawn signature using a stylus or touchscreen, or a secure signature created through a dedicated electronic signature platform.

Electronic signature technology is widely adopted due to its simplicity, speed, and ease of integration. Many organizations see immediate ROI by improving turnaround times, reducing administrative costs, and enhancing the overall customer experience.

However, businesses must look beyond surface-level convenience. Successful eSignature adoption requires collaboration across legal, IT, compliance, and operations teams to ensure the solution supports long-term scalability, governance, and regulatory obligations.

Choosing the right electronic signature solution is not just about signing faster—it’s about signing securely, compliantly, and confidently.

4 Common Electronic Signature Risks You Need to Know

Despite the advantages, electronic signatures are not risk-free if implemented without due diligence. Organizations must evaluate both operational and legal implications before selecting and deploying an eSignature solution.

Below are the most common electronic signature risks businesses should be aware of.

1. Organization-Wide Risks

As businesses scale their digital workflows, a major risk arises when electronic signature usage is fragmented across departments. Without a centralized strategy, organizations may face inconsistent processes, overlapping tools, and governance gaps.

An enterprise-ready eSignature approach should support multiple use cases—from HR and legal to sales and finance—while maintaining consistency and control. Ignoring organization-wide requirements can limit scalability and increase operational complexity.

The right electronic signature solution enables businesses to standardize workflows, apply governance policies, and scale usage across departments without disruption. Centralized administration, role-based controls, and shared services help eliminate redundancy while improving efficiency.

2. Legal Compliance Risks

Legal compliance remains one of the most critical electronic signature risks. Organizations must ensure their chosen platform complies with applicable regulations such as the ESIGN Act, UETA, and other global eSignature laws.

Key compliance requirements include identity verification, signer authentication, consent management, audit trails, and secure record retention. Failing to meet these standards can result in unenforceable agreements and legal exposure.

A trusted eSignature provider helps reduce compliance burden by embedding regulatory requirements directly into the signing process. This ensures signatures are legally binding, verifiable, and defensible—regardless of where transactions occur.

3. Security Risks

Security is a top concern when handling digital agreements and sensitive data. Without proper safeguards, electronic signatures may be vulnerable to tampering, impersonation, or unauthorized access.

Organizations should prioritize platforms that use encryption, secure authentication, tamper-evident audit logs, and industry best practices for data protection. The goal is not just to secure documents, but to protect the entire signing experience.

Modern electronic signature solutions go beyond basic signing by establishing trust in identities, devices, and transactions—ensuring data integrity and maintaining confidence in every agreement.

4. Unauthorized Signing Risks

Unauthorized signing is another common electronic signature risk. Businesses must ensure that only approved individuals are allowed to sign specific documents and that signing authority is clearly defined.

Advanced eSignature platforms allow organizations to manage signatory roles, permissions, and approval workflows efficiently. Detailed audit trails provide full visibility into who signed what, when, and under which conditions.

By implementing proper access controls and authorization rules, organizations can prevent misuse while maintaining accountability and transparency across all transactions.

Conclusion – Electronic Signature Risks

Electronic signatures are now a permanent part of digital business infrastructure. As organizations continue to rely on remote transactions and automated workflows, managing electronic signature risks becomes essential—not optional.

When properly implemented, electronic signatures enhance efficiency, security, and compliance while supporting seamless business operations. The key lies in choosing a secure, compliant, and scalable platform that aligns with organizational needs.

With the right processes and a trusted solution like WeSignature, businesses can minimize risk, maintain legal confidence, and continue creating value through secure digital agreements.

Frequently Asked Questions (Electronic Signature Risks)

1. What are the biggest risks of using electronic signatures?
The main risks include fraud, unauthorized signing, weak identity verification, data breaches, and legal non-compliance if the platform is not secure.

2. Are electronic signatures legally risky?
Electronic signatures are legally valid, but risks arise when consent, audit trails, or compliance with laws like ESIGN or UETA are missing.

3. Can electronic signatures be forged?
Yes, basic or unsecured e-signatures can be forged. Secure platforms prevent this through authentication, encryption, and tamper-proof audit logs.

4. How can businesses reduce electronic signature security risks?
Businesses can reduce risks by using encrypted platforms, enabling identity verification, maintaining audit trails, and controlling signer access.

5. What is unauthorized signing in electronic signatures?
Unauthorized signing happens when someone signs without proper authority or approval, often due to poor access controls or role management.

6. Are electronic signatures safe for sensitive documents?
Yes, when handled through compliant platforms like WeSignature that offer encryption, authentication, and regulatory compliance.