In the shift toward digital processes, many businesses are moving away from paper-based signatures. However, a common misconception persists—thinking that inserting a photo of a handwritten signature into a document is the same as using an e-signature. In reality, these two methods differ significantly in terms of legality, security, and efficiency.
What Is a Scanned Signature?
A scanned signature, also called a pasted or image-based signature, is simply a photo or scanned image of your handwritten signature that you insert into a digital document. It may appear visually authentic, but it lacks any real verification, audit trail, or security features.
While convenient and easy to use, scanned signatures are vulnerable to fraud and offer no legal guarantees. Anyone with access to the image could reuse it without your permission. This method is still common in informal agreements or internal documents, but it’s far from ideal in professional, high-stakes environments.
What Sets E-Signatures Apart?
An electronic signature, or e-signature, is much more than just a visual stamp. It involves a secure digital process that verifies the signer’s identity, records when and where the signature occurred, and maintains an audit trail to ensure document integrity.
E-signatures are legally recognized in many regions, including under the ESIGN Act (USA) and eIDAS (EU). Unlike scanned images, they’re encrypted, tamper-proof, and compliant with international standards.
Key Differences Explained
Here’s how the two methods differ across several important dimensions:
- Legal Standing: E-signatures are widely accepted in courts and official processes, provided they follow proper compliance procedures. Scanned signatures, on the other hand, are often not considered legally binding because they lack verifiable data.
- Security: E-signatures include built-in encryption, authentication measures, and audit logs. Scanned signatures can be easily copied, modified, or misused.
- Verification: With e-signatures, you can verify who signed a document through email, phone verification, or ID checks. Scanned signatures offer no way to confirm the identity of the signer.
- Compliance: E-signatures are designed to meet industry regulations for data protection and user authentication. Scanned signatures do not meet any of these standards.
- Workflow Efficiency: E-signatures streamline processes by eliminating the need to print, sign, scan, and resend documents. Everything happens online, often in real-time, which speeds up transactions and approvals.
Why E-Signatures Are a Smarter Choice
For businesses dealing with sensitive documents—contracts, financial agreements, HR files, NDAs—relying on scanned signatures poses significant risks. E-signatures reduce these risks while improving productivity and maintaining compliance. They also project a more professional, tech-forward image to clients and partners.
The Role of Brand Identity in Voice Communications
One overlooked benefit of adopting secure e-signature platforms is the consistency it brings to your brand’s professional image. Much like branded calling builds trust over the phone, e-signatures build trust in digital transactions. When recipients see that your documents are securely and professionally handled, it reinforces confidence in your business practices.
So, Should You Stop Using Scanned Signatures?
Yes. Especially if you're dealing with external stakeholders or formal agreements. Scanned signatures are best left to low-risk, internal documents. For anything involving legal, financial, or regulatory implications, e-signatures are the safer, smarter route.
It’s easy to confuse a scanned image with a real signature, but only e-signatures provide the legal validity, security, and efficiency modern businesses need. By making the switch, you’re not just digitizing your workflow—you’re protecting your operations and strengthening your brand.