The rise of digitalisation has led organisations and institutions to handle increasing volumes of electronic documents daily. However, this digital transformation comes with a significant risk: document fraud. Whether it’s the falsification of contracts, fraudulent invoices, or the alteration of certificates, these practices can have severe consequences for organisations. Fortunately, solutions like the electronic seal provide a reliable way to counter these threats effectively.
In this article, we delve into the concept of document fraud, the challenges it poses, and how the electronic seal emerges as a strong tool for securing digital exchanges.
Table of contents
Understanding document fraud
What is document fraud?
Document fraud refers to any action intended to falsify, alter, or forge a document to deceive others. Examples include modifying contracts, adding false information to certificates, or creating fake invoices.
Why is it a major issue?
According to recent studies, 65% of businesses [1] report having fallen victim to document fraud, making it one of the most prevalent forms of fraud.
The consequences are significant:
- Financial losses: fraudulent activities, such as fake invoices or altered contracts, lead to direct financial losses. Additionally, handling fraud-related disputes incurs indirect costs, such as legal fees or investigative expenses.
- Legal repercussions: organisations targeted by fraud may face regulatory sanctions and potential liability for non-compliance or negligence.
- Reputational damage: a fraud incident can erode trust among clients, business partners, and investors, harming the company’s long-term credibility.
Preventing document fraud is therefore critical to safeguarding an organisation’s credibility and sustainability.
What is an Electronic Seal?
Definition and functionality
An electronic seal is a digital solution that authenticates a document on behalf of a legal entity, such as a company, organisation, or institution. Unlike an electronic signature, which represents an individual’s consent, the electronic seal validates the document’s origin, ensuring it genuinely comes from the entity claiming to issue it.
The role of the Electronic Seal in combating document fraud
Ensuring document integrity
When a document is sealed electronically, any subsequent modification is immediately detectable. This ensures the document’s original content remains tamper-proof and unaltered.
Authenticating the issuer
The electronic seal verifies the document’s origin, confirming it was issued by the stated entity. This fosters trust between parties engaging in digital exchanges.
Traceability and legal recognition
Each sealed document is accompanied by a qualified timestamp, providing indisputable proof of its creation date and bolstering its legal reliability.
Practical applications and business benefits
Industries most vulnerable to document fraud
Some sectors are particularly at risk of document fraud:
- Banking and insurance: loan agreements, insurance policies, and financial statements.
- Real estate: property deeds, rental agreements, and sales contracts.
- Public administration: certificates, permits, and official attestations.
In these industries, implementing electronic seals reduces risks and simplifies compliance processes.
Concrete benefits for organisations
Adopting an electronic seal provides numerous advantages:
- Enhanced protection against document falsification and tampering.
- Improved operational efficiency through automated verification processes and reduced delays.
- Strengthened trust and transparency with business partners and clients.
Conclusion
With the increasing prevalence of document fraud, the electronic seal stands out as an indispensable solution. It ensures the integrity, authenticity, and traceability of documents while reinforcing their legal value.
At Evidency, we offer tailored digital trust solutions to meet organisations’ needs, helping them reliably secure critical data while ensuring compliance with regulatory standards.
Explore our electronic seal solution and contact our experts to learn more.
[1] Finovox study: https://www.finovox.com/blog/les-grands-chiffres-de-la-fraude-documentaire-dans-les-entreprises/
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