Digital Signatures Make Online Transactions Easy: 6 Tips to Prevent Data Theft

In recent years, the world of technology has rapidly changed. Especially after the COVID period, there has been a swift increase in digital transactions. In this era of growing digitization, securing personal and financial data has become a challenge. Keeping this in mind, the trend of digital signatures is increasing rapidly. A digital signature is a secure login ID and password used to verify documents.

However, it is crucial to be extremely cautious about digital signatures because the use of document signatures can make one susceptible to e-signature scams and phishing.

So, today in the work news, we will discuss what a digital signature is. You will also learn about:

1. How beneficial digital signatures are.
2. What precautions should be taken while using digital signatures.

Question: What is a digital signature?

Answer: Just as physical signatures authenticate identity, a digital signature also authenticates identity. It is used to verify documents sent over the internet. Digital signatures are considered more reliable and secure compared to traditional signatures. They are used for e-commerce, financial transactions, and distribution activities. The certificate for a digital signature is obtained only through the digital signature itself.

Question: Why has the digital signature become a topic of discussion recently?

Answer: Recently, the Indian crypto wallet WazirX was hacked. In this hacking incident, ₹1900 crores were stolen from WazirX wallets. It is believed that this hacking was carried out using a multi-signature wallet, which is used for digital signatures. The hackers initially duplicated the digital signature and then stole money from people’s wallets.

Question: What precautions should be taken regarding digital certificates?

Answer: Digital signatures are legally valid and equivalent to physical signatures. Therefore, it is crucial to keep them secure. They should not be shared with anyone. To keep documents secure, use a USB token/smart card. The function of the USB token is to store the digital signature. If someone’s e-token is stolen, they should revoke the digital signature certificate and obtain a new one.

Question: How can you secure your digital signature?

Answer: Digital signatures are an essential part of business in India. They provide a high level of security because they are difficult to replicate or counterfeit. However, cybercriminals are still trying new tricks to infiltrate accounts. To make your digital signature more secure, you can adopt some methods provided in the graphics below:

1. The password for your digital signature plays a crucial role in keeping it secure. Therefore, always use a strong password that is difficult to guess. The password should be at least 12 characters long and include uppercase and lowercase letters, numbers, and symbols.
2. Never share your digital signature password with anyone. Do not enter your password on unauthorized websites or applications. Also, do not write down your password in a diary or phone notes.
3. If your digital signature certificate is stored on a secure device like a USB drive or smart card, keep this device away from unauthorized websites. Additionally, store your device in a secure place.
4. Always keep the software you use to create and manage your digital signature up to date. Software updates improve security levels, helping protect your digital signature from cyber attacks.
5. Cybercriminals use phishing to steal digital signatures. Phishing emails are designed to look like they come from legitimate sources like your bank or government. These emails often contain links that take you to fake websites resembling the real ones. If you enter your digital signature password on these fake websites, cybercriminals may steal it.

Question: How can cybercriminals cause harm using digital signatures?

Answer: Cybercriminals can cause harm in several ways using digital signatures, such as:

1. Scams: Cybercriminals can use stolen digital signatures to commit scams, for example, by signing contracts or invoices.
2. Data Theft: If your digital signature certificate is lost or stolen, it can be used to enter into agreements on your behalf.
3. Malware and Hacking: Malware can be used to steal digital signatures. Malware-infected devices may allow cybercriminals to access your digital signature password.

Question: Are digital signatures issued to individuals or companies?

Answer: Digital signature certificates are issued to individuals for conducting legally valid transactions on any electronic device. Entities themselves cannot obtain digital signature certificates. Instead, individuals representing the organization receive digital signature certificates on behalf of the company.