How to Eliminate Document Fraud with E-Signature

Everyday, business leaders and professionals are hearing about a company falling victim to document fraud and tampering. In fact, the SEC fined Wells Fargo 5 million dollars because one of their employees was caught tampering with a document. Although the employee was fired, the damage had already been done.

You probably didn’t know that the average organization loses 5% of revenue because of internal fraud. According to the Association of Certified Fraud Examiners (ACFE), more than 50% of organizations that fall victim to internal fraud never retrieve their financial losses. These top industries for fraud include banking & financial services, government, staffing, education, and healthcare, to name a few.

Here are some of the top ways you can eliminate company fraud with e-signature solutions (the following statistics are provided by the ACFE):

Early detection is your priority.

  • The sooner you proactively monitor company fraud, the less it will cost your company.
  • If a fraud scheme goes on for at least 7 months, it will cost your company about $50,000, according to the ACFE.
  • Schemes that last at least 61 months will cost your company about $985,000.

Always be on the lookout for suspicious activity.

  • The average fraud suspect doesn’t have any previous charges of fraud or conviction, according to the ACFE.
  • 33% of company fraud suspects have financial difficulties.
  • 22% of fraud suspects have unusually close relationships with customers.
  • 21% of fraud suspects are unwilling to share control of responsibilities.

Choose e-signature technology.

  • E-signature technology can be considered a “tamper-evidence” system; if a person tampers with your e-signature, the tamper evidence will alert you that something’s wrong.
  • After you see this alert, you can find out specifically what has been changed.
  • Many e-signature platforms provide audit trails and API features where you can easily and quickly detect any errors in your documents.

Learn about how tamper evidence works.

  • When a user first signs a document, an e-signature platform will usually take a snapshot of what the document looks like.
  • Throughout the entire tamper-evidence process, the e-signature technology takes notes on everything that happened to the document.
  • It’s important to educate your employees on tamper-evidence so that you can deter employees from committing fraud in the first place (but, hopefully they won’t at all).
  • Make sure your documents are tamper-evident throughout the entire signature process.

Although it’s nearly impossible to prevent all internal fraud from occurring, there are crucial security measures you can take to reduce your chances. Our tips will help you minimize financial struggles and reputation damage in the long-run.