Digital signatures are electronic codes specific to individual users, which can be used to identify the originator of a message or file, and to indicate approval of information transmitted. There are different types of digital signatures available (ie public key infrastructure, asymmetric cryptography, account numbers and passwords), and the level of security you require will dictate which method you use.  

The Electronic Transaction Act 1999 gives legal recognition to the use of electronic signatures and you may find them useful in executing electronic contracts on your website.  

Even if your Internet contracts use digital signatures they may still be unenforceable, for example, if the person whose digital signature is on the contract is not the same individual who is agreeing to be bound by the terms of that contract. However, the risk of e-businesses dealing with parties who misuse digital signatures is similar to the commercial risk of fraud that arises through forgery of signature on a paper contract.

For more information on security issues, you might like to look at this fact sheet developed by DCITA as part of their publication, Trusting the Internet:

 Trusting the Internet - Fact Sheet: How do I make sure my digital certificates and keys are secure? (73 kb) 

Next topic in this section >