Key Takeaways

  • Signature forgery is the unauthorized copying of a genuine signature, usually involving some element of fraud. 

  • It is a felony in all 50 US states, with the punishment depending somewhat on the nature of the forgery.

  • Depending on the nature of the document forged and the intent of the person who committed the forgery, forging a signature can result in a criminal offense, a prison sentence, a contract declared null and void, or restitution for the victim.

  • If you’re charged with forgery or need to protect documents against forgery, contact an attorney as soon as possible to help you navigate the legal process, build a defense, and implement protective orders. 

  • Post a job on UpCounsel to find a contract attorney in your state. 

Every day, contracts are willingly entered into by two or more parties who agree to be bound by them. Sometimes, though, an individual creates a false document or alters a legitimate contract with the intent to be fraudulent. This is considered “forgery” and is usually considered a felony in all 50 US states. 

One type of forgery is a signature forgery. When this occurs, certain legal actions may need to be taken. Note that several criminal statutes require the individual making the forgery to be attempting to gain benefit, usually monetary, from it. 

Understanding Signature Forgery

Signature forgery is falsely replicating another person’s name or signature on documents. It is against the law and is considered a crime that can have numerous consequences for someone or their business.  

For example, a person could purposely modify a check worth $1,000 to $10,000 to illicitly make an additional $9,000 without the other party’s knowledge.  

By changing the amount, that individual has performed an act of forgery and is subject to criminal punishment, such as fines or imprisonment. Additionally, civil liabilities may be faced. 

If you or your company suspects you are a victim of signature forgery, we highly recommend seeking legal advice from an attorney immediately, as fraud or forgery cases often have a statute of limitations.  

Having a person to act as an expert witness to back your claim will help solidify your case.

What is a Legal Signature?

Legal signatures are completed by writing or using a machine or device. A signature may consist of any mark, word, or symbol adopted by someone who intends to authenticate a document.  

The signature does not bind the document or contract if a person signs a contract without the other party's consent. This is because the intent of both parties has not been established.  

The Uniform Commercial Code (UCC) governs commercial transactions and the sale of goods. It states that an individual is only bound on an instrument if they have personally signed it or had a representative sign it upon their request.

What Are the Elements of a Valid Contract?

There are certain elements required in a contract for it to be valid.  

These elements include: 

  • An offer: A statement of intent to enter into and establish a contract is called an offer.

  • Acceptance: Consent to the terms of a contract is referred to as acceptance.

  • Material items: Specifications such as the contract's price, nature, and identification should be clarified. These are referred to as material items.

  • Consideration: This is typically defined as offering something of value from one party to the other, normally by committing one promise to another.

A contract must be detailed enough that a court can legally enforce it if necessary, and review by legal counsel is recommended for all contracts or contract templates.

Legal Penalties and Consequences

Forging a signature is a crime in all 50 U.S. states and is considered a felony by all, though many also allow forgery to be a misdemeanor in certain cases. 

Punishment varies by state, and the penalties include:  

  • Criminal charges

  • Jail time

  • Document annulment

  • Financial reimbursement for the victim 

The seriousness of punishment for forgery is also based on a few factors.  

For example, the forgery of official government documents is taken very seriously. In contrast, the courts will likely give more leniency to a small monetary amount taken out of perceived necessity with the intent to pay it back. 

Some states, like New York, have degrees of forgery with different definitions and punishments. Research your own state’s individual laws so you can respond to forgery charges or proceed with accusations appropriately. 

Forging a signature is a serious legal issue and must be handled appropriately.  

Perhaps an unauthorized signer gains access to your bank account and makes it appear you agreed to a contract. Act quickly upon the realization that someone has forged your signature in this case. 

Immediately contact the party that received the fraudulent documentation or contract.  

This grants the recipient the opportunity to rectify past actions or stop any further damaging action that may occur from the forged contract.  

Although it depends on the recipient, there may be a certain time frame within which you need to report a forged document.  

For example, a bank may require notification within 60 days of discovering the unauthorized transaction or loan application on an account statement.

Navigating Forgery Charges

You might become involved in a long and complex legal procedure when accused of forgery. From a forgery charge to the courtroom, it’s wise to understand the typical process of a forgery lawsuit.

The Legal Process for Forgery Charges

If you are charged with forgery, understanding the legal process and knowing what to expect can help you navigate this situation more effectively.  

Investigation

The process typically begins with an investigation. Evidence, including forged documents, witness statements, and other relevant materials, is collected.  

Charges Laid

The accused may be arrested and charged with forgery, depending on the evidence.  

The charges will depend on the circumstances of the case. Was the document a blank cheque or a passport, for instance, and with what intention was it forged? 

Arraignment

The accused will then be brought up on charges. This is known as an arraignment and is the first time a defendant will be formally charged and asked to plead (guilty, not guilty, or no contest).  

Bail may also be set at this point. 


Building Cases

In the pre-trial stage, both sides will continue to build their cases by gathering more evidence, contacting witnesses, and potentially reaching plea bargains.  

If the case goes to trial, the prosecution must prove the accused is guilty of forgery beyond a reasonable doubt.  

This requires demonstrating that the accused knowingly created or altered a document intended to deceive. A forger can be sentenced to jail time, fines, restitution to the victim, and other punishments if convicted. 

Rights of the Accused

The accused is entitled to be presumed innocent until proven guilty (beyond a reasonable doubt). They have these rights, along with others, throughout the legal process. 

Preventative Measures and Legal Safeguards

Although elements will always be out of your control, several effective preventative measures and legal safeguards against forgery are still available to mitigate this risk. 

Practical Advice for Preventing Forgery

Certain technological solutions, including secure electronic signature solutions, can authenticate and encrypt signatures.  

Maintaining a detailed record of transactions, the date they occurred, and other relevant information is also helpful.  

Furthermore, you can keep sensitive documents secure and in access-controlled places. Regularly audit and monitor access to these documents.

Legal Safeguards Against Forgery

There are also certain legal safeguards worth considering to minimize the risk of signature forgery: 

  • Anti-forgery clauses in contracts

  • Obtaining insurance for the potential losses caused by forgery

  • Educating employees about why it is important to secure documents securely and what the legal ramifications of forgery can be

Seeking Legal Help

Forgery is a serious crime with legal consequences to match.  

Whether you are charged with forgery or simply want to prevent someone from falsifying your documents, carefully navigate the legal process and take proper precautions.  

Whenever possible, seek the counsel of a legal professional for comprehensive protection. 

Early legal intervention can often make a difference in forgery cases, whether you are trying to beat forgery charges or to certify your document as legitimate.

Conclusion

If you need help resolving legal issues from a false signature on a contract, you can post your legal needs on UpCounsel's marketplace. UpCounsel accepts only the top 5% of lawyers on its site.  

Contract lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

FAQs

Is it illegal for an employer to forge a signature?

Yes, forging a signature is illegal for anyone, including employers. It can lead to criminal charges and severe punishment.

Is it hard to prove forgery?

Finding evidence that the accused knowingly and intentionally forged a document to defraud the public can be difficult. However, it is not impossible, especially with expert legal help. 

Sometimes, a handwriting expert may also be consulted to verify that a signature was forged. Additionally, if a professional forged your signature while performing their typical work activities, you may need to contact an industry regulator.  

An example is a real estate agent who signs off on a contract to sell your property without your consent.

What happens when someone forges your signature on a check?

If someone forges your signature on a check, you must report this to your bank and the police immediately. The forger can be held criminally responsible, and you may be able to recover any financial losses. 

A bank may require a written statement, with your real signature, to document that you believe a signature has been forged and you are attesting to this under penalty of prosecution.  

This will also initiate the process of reversing any negative effects the forged document may have caused. If the signature is authentic, this statement will also release the receiving party of any responsibilities.  

To clarify, a bank may only consent to reimburse your money after you complete an affidavit stating you believe a signature has been forged. 

This affidavit will allow the institution that received the forged document to investigate the situation further.  

In some cases, legal help may be required to solve the problem.

For example, a party may attempt to sue you if you don't follow the terms outlined in a forged contract, which an authorized person at the other party also signs. In these cases, you should consult an experienced contract review attorney and may need to attend court.