1. Identify Electronic Records:
Organizations must identify any electronic records that will be used for signing documents online and ensure that they are compliant with the ESIGN Act.
2. Obtain Consent:
Businesses must obtain consent from their customers before using an electronic signature to sign a document. This can be done through a simple agreement in which customers agree to use the electronic signature process.
3. Ensure Security:
The E Sign Act requires organizations to implement security measures to protect the integrity of the documents being signed electronically, including encryption and authentication methods such as digital signatures or passwords.
4. Provide Disclosure Statement:
A disclosure statement should be provided outlining how the customer's data is collected, stored, and used.
5. Retain Records:
Organizations must store electronic records and related documents for a minimum of five years.
6. Verify Identity:
Businesses need to verify the identity of customers before allowing them to use an electronic signature. This is typically done through a two-step authentication process such as a password or biometrics like facial recognition or fingerprint scanning.
7. Create Audit Trail:
An audit trail must be created for each document signed electronically. The audit trail should include the date and time when the document was signed, as well as any other relevant information such as the customer's IP address or location.
8. Update System:
Organizations need to ensure that their systems are regularly updated in order to remain compliant with the ESIGN Act. This includes regularly patching software and updating encryption methods.
9. Monitor Compliance:
Businesses need to monitor their compliance with the E Sign Act on an ongoing basis by auditing their internal procedures and policies related to electronic signatures periodically.
10. Train Employees:
Finally, organizations should provide training to employees who use or manage electronic signature processes so they understand how to use them properly and comply with the E Sign Act.