What Should Citizens Know When Entrusting Electronic Signatures and Powers of Attorney to Third Parties?

In recent years, there has been an increase in cases where citizens are deceived, and legal entities are established in their names through the unauthorized use of electronic signatures and powers of attorney. Analysis shows that in many cases, legal entities are created in the names of citizens without their consent or knowledge.

The State Tax Service informed that such incidents often lead to illegal entrepreneurial activities and the accumulation of tax debts.

It was noted that an electronic signature is a tool of legal significance that confirms a citizen’s identity in a digital environment. In Azerbaijan, digital signatures such as Asan Imza ( qualified mobile digital signature) and other electronic signatures are widely used. These signatures are essential for accessing government services, verifying various documents, and conducting business transactions. However, unfortunately, the misuse of these signatures for fraudulent purposes has become more common.

Investigations conducted by the State Tax Service reveal that, in some cases, citizens are deceived, and their electronic signatures are misused. Additionally, powers of attorney are obtained in their names, or they are enticed into participating in unlawful transactions. In many cases, citizens remain unaware of the responsibilities associated with the documents they sign. Such actions lead to the establishment of legal entities, transactions conducted in their names, and significant tax debts owed to the state budget. Since the citizen is legally considered the owner of the electronic signature, they are held accountable for settling the debts and bearing the consequences of transactions carried out using their signature.

The State Tax Service has issued a serious warning, particularly regarding the delegation of entrepreneurial powers to third parties. A power of attorney is a document granting one person certain rights on behalf of another. At the same time, citizens should exercise caution with their enhanced electronic signatures. An electronic signature is personal to its owner, and the owner is responsible for safeguarding it. It must not be allowed to be used by others.

Every citizen must understand the legal responsibilities associated with the powers granted by an electronic signature. This understanding helps prevent potential legal issues in the future. If citizens encounter fraudulent activities or unauthorized transactions involving their electronic signature, they must immediately report the matter to law enforcement agencies and the relevant state bodies to suspend the validity of the signature.