Is Wise Safe & Legit? How Reliable it is?

Last Updated on April, 2024

Wise. Wise. Wise.

‘Why does everyone suggest Wise a secure transaction option?’

If you get this question in your mind, there’s a point because Wise has a solid 4.6 rating in the app store for its services around the world.

However, you can’t solely depend on people’s opinions when dealing with money. You should search more and know everything in and out.

That’s why I decided to cover everything under this topic to give you a satisfying piece!

Quick Summary

Wise is safe to use due to its secure account system, regulation by international authorities, and investment in digital security measures.

Wise is a highly rated and globally recognized secure transaction option, with positive reviews and a strong reputation among its 11 million customers.

Wise is a reliable and cost-effective alternative to traditional banks for international transfers, with transparency and customer safety as top priorities.

Is Wise Safe to Use?

wise logo

Yes. Wise is safe to use. I’ll tell you why!

Because Wise allows you to open a secure account, hold and exchange over 50 currencies, and use a linked debit card for global spending. (Want to learn more about how Wise work? Read this guide.)

It is regulated by international authorities, including ASIC in Australia, the UK Financial Conduct Authority (FCA) to be authorized as an electronic money institution in the U.K., and the Financial Crimes Enforcement Network FinCEN in the U.S.

Wise currently serves over 11 million customers, and it’s a legitimate and safe service that adheres to strict financial regulations globally. 

You can transfer money to over 80 countries, hold over 50 currencies in your Wise account, and use the Wise card, which is independently audited, to spend in 200+ countries.

In the U.S., Wise is registered with FinCEN and holds licenses to operate as a money transmitter in most states. In states lacking a direct license, Wise collabs with Community Federal Savings Bank to provide services securely.

GUESS WHAT? Wise prioritizes customer safety by following global regulations. Licensed providers are required to maintain high capital levels, safeguard customer funds, and undergo regular external audits. All customers undergo thorough verification to prevent illegal activities.

Wise has also invested in digital solid security for its online and in-app services. The website and app require a thorough account verification process and a secure password for account setup. 

Additional security features include two-factor authentication and various transaction monitoring tools.

And if you ask me, ‘What about continuous monitoring?’ Wise conducts ongoing vulnerability scans and internal and external audits to detect and prevent potential fraud or criminal activities. This ensures that customer accounts remain secure.

Understood?

And I’ll cover the Wise app’s safety, too.

The Wise app is a trusted and secure choice for many users. It has gained over 10 million downloads on the Google Play store, receiving an impressive 4.7-star rating from almost 450,000 reviews.

On the app store, it has a 4.6 rating from over 29,000 reviews.

To ensure safety, the Wise app frequently updates its service, fixing bugs and addressing industry-standard security measures. The Wise app prioritizes user safety, making it a reliable and secure application.

Still not convinced to open an account for yourself? Read our complete breakdown of Wise.

Is Wise as Safe as Banks?

Banks are subject to more regulation than international money transfer companies. Even though Wise is not a bank, it provides services as secure as a bank. Banks have more rules to follow because they offer credit cards and loans. 

When sending money internationally, Wise is as safe as a bank and is usually quicker and less expensive.

Is Wise (A Formally Transfer Wise) a Bank?

No. As I said before, Wise isn’t a bank, but it acts like one in many ways. Even though it’s not a bank, Wise has to follow the rules set by ASIC, a government organization that oversees financial services.

Do you know? In Belgium and the European Economic Area (EEA), Wise is treated as a leading financial institution.

Wise takes these rules seriously to ensure it’s doing things right. Like banks have to follow regulations, Wise also has its own dedicated teams that work hard to keep your money safe and stop fraud.

They’re dedicated to making sure everything is secure.

Is Wise Safe to Transfer Money?

wise logo on a handshaking image background

Yes. Transferring money through Wise is a safe and convenient option. You can send money to over 80 countries in more than 50 currencies. Register an account and complete the verification process for added security to get started.

Once your Wise account is active, you can easily arrange payments online or through the Wise app. The process involves two-factor authentication to ensure the safety of your transactions.

You can also track your payment immediately, providing peace of mind.

Services Wise offers include quick transfers, with many being instant or arriving within a few seconds. 90% of transfers are completed within 24 hours, minimizing the wait time for your recipient.

If you ever need assistance, Wise’s support teams are readily available. You can use the chat option in your account, or if you prefer, you can reach out via phone or email.

However, before initiating Wise payments, you can check customer reviews to understand the service’s reliability. Wise has received an excellent rating of 4.2 out of 5 on Trustpilot, based on over 203,000+ reviews.

The BEST PART is that 84% of these reviews gave Wise a 5 out of 5-star rating, with customers highlighting the speed and ease of the service.

How Does Wise Keep Your Money Safe?

This is a fair question. So, I’ll answer you. 

Wise has: 

  • Top Industry Level Security Measures: Wise will keep Your money safe using various strategies. They store your funds in trusted institutions that meet the highest standards.
  • Global Licensing and Regulation: Wise is licensed and regulated globally to ensure compliance with international financial standards.
  • Dedicated Anti-Fraud Support: Wise’s 24/7 support team and advanced anti-fraud technology work tirelessly to secure your account.
  • Enhanced Account Security: Your account and card have 2-factor authentication for added protection. You will also receive transaction alerts whenever a payment is made with your Wise card, which is independently audited with regular testing.
  • Regular Security Audits: Wise undergoes independent audits and frequent testing to identify and fix potential vulnerabilities.
  • Privacy Protection: Wise strictly follows the Privacy Act to safeguard personal information.

By implementing these measures, Wise ensures a comprehensive and robust approach to securing your money and personal data.

In simple terms, Wise keeps customer funds safe.

Is Wise Money Transfer Safe?

Yes. Sending money abroad with Wise is a secure choice. Wise is licensed and regulated by ASIC and APRA, ensuring it follows strict rules to protect your money.

Plus, Wise has implemented various security measures to keep customers’ money safe and guarantee the safety of payments. 

REST ASSURED. I mean, your transactions with Wise are backed by a reliable and trustworthy system.

However, I know you have more similar questions.

I’ll answer them one by one. 

Keep reading.

cash spreaded

Is Wise Safe to Keep Money With?

Yes. Your money is secure when you keep it in your Wise account. As already said, Wise has a special license from APRA called ‘Purchased Payment Facility,’ which makes it safe to hold funds.

When you deposit money into your Wise account, it goes to a trusted financial institution. This ensures that your money is ALWAYS kept separately from Wise’s own funds, making it safe and protected.

Is Wise Safe for Savings?

Yes. Funds in your Wise accounts will be kept separately from their capital amount. I mean, your money will be protected even if Wise gets into financial difficulties. They don’t bear an interest, either. 

Is it Safe to Connect Bank Accounts to Wise?

Your data’s safety is paramount with Wise and the eGIRO scheme. Strong encryption ensures only the bank and Wise can use your info.

Plus, their limited access to decryptions will be an extra layer of protection. Their Two-step verification and transaction signing strengthen authentication and authorization. 

So don’t worry! Your data and transactions are safe while connecting your bank account to Wise.

Is a Wise Business Account Safe?

Your Wise business account is secure and follows regulations set by ASIC. Just like personal accounts, your business funds are fully protected.

However, the critical difference between a Wise business account and a traditional bank’s business account is probably the COST.

Wise provides international transfer(s) and currency conversion using the mid-market exchange rate and transparent and low fees. TRUST ME. This will be more affordable than using your usual bank.

Is Wise Legit?

Yes. Wise is a trustworthy and secure financial service that helps more than 11 million customers globally.

Unlike traditional banks, Wise is generally more cost-effective. Wise handles international payments differently, providing a fair mid-market exchange rate and transparent, low fees.

So, you’ll not face any tactics or questionable practices with Wise. 

Is the Wise Website Safe?

Yes. They hold customer data security, employing solid measures such as encryption and secure logins. The platform is certified with SOC 1 Type 2, SOC 2 Type 2, PCI DSS, ISO 27001, and GDPR compliance.

Do you know? Wise’s ongoing vulnerability scans, audits, and bug bounty programs ensure proactive protection. So, Wise’s commitment assures users that the data on their website is safe.

What Personal Data Does Wise Collect?

Wise collects personal data from everyone, including business customers, details you provide, and data obtained during your use of Wise service(s), like your I.P. address. 

Plus, Wise will gather information from third parties to support in verifying your account.

To manage marketing communication, you have the OPTION to adjust your settings within your account or send an email to the customer service team, expressing your preference not to be contacted for marketing purposes.

Legal requirements may necessitate Wise to retain certain information about you. The duration of data retention depends on the specific details and applicable laws.

However, Wise assures that customer data will only be held for as long as necessary, considering practical or legal purposes.

Do I Have to Verify My Identity on Wise?

Yes. When using Wise, they prioritize your security through thorough verification processes. With your device, capture clear photos of your I.D. and face in a well-lit room.

Follow on-screen instructions closely, ensuring your entire document and face are visible. Once started, don’t exit until completion. For those without smartphones, laptop/computer cameras work, too; select the options in the verification flow on the website.

Remember that this process differs from a SIMPLE selfie with your I.D. Clear instructions will guide you. Plus, your cooperation ensures a safe and compliant experience for everyone.

Unknown person image on a green background

Does Wise Offer Protection for Buyers?

If you’re using your Wise debit card and wondering about buyer protection, it’s different from credit cards. Credit cards have a maximum limit on what you’re responsible for if your card is stolen.

But with a Wise card, you need to take some essential steps.

The most crucial thing is to report your lost or stolen card as soon as possible. This means you should freeze, block, or cancel your card quickly. The good news is that managing your Wise card is easy with your phone.

You can instantly block or cancel the card using the Wise app.

You can also set up notifications to alert you if there’s a payment you don’t recognize. If, unfortunately, your Wise card is stolen, act fast.

Freeze the card immediately and report the issue to Wise. The Wise support team will look into it and guide you on what to do next based on the details of the problem you’ve faced.

Are Wise Accounts FDIC Insured?

No. Wise accounts aren’t FDIC Insured. As you know, Wise is not a traditional bank; it provides different services than a typical bank. So, Wise secures customer funds safely and doesn’t involve FDIC insurance.

Unlike banks, Wise doesn’t lend out customers’ money. 

Banks usually have FDIC insurance to protect customers and ensure the safety of their funds. However, due to Wise’s specific license type in the U.S., it’s required to protect customer funds through safeguarding.

And, when it comes to safeguarding since Wise accounts are not FDIC insured, the company uses safeguarding to ensure that customers’ funds are always accessible when needed.

This approach ensures the safety and availability of funds, even though it differs from the traditional FDIC insurance provided by banks.

Is Wise Safe for Large Amounts?

stack of cash spread

Yes. But, when using Wise to send high-value payments, it’s essential to follow some simple steps to ensure a smooth transaction.

First and foremost, make sure to verify your account. You’ll need to complete a verification process if your account is new. Even if your account is not new, you will still be asked to verify it later, depending on the bank transfer fees and type.

Next, confirm the recipient’s bank details. Gather all necessary information, such as the recipient’s full name and bank account number, to ensure the payment is processed safely. Plus, be aware of region-specific details like an IBAN, routing number, or sort code.

Finally, double-check your transfer limits, determine your bank’s transfer limit, and check if any fees are associated with funding your Wise transfer through your bank account or card.

You can learn all about Wise limits in this guide.

SAFE as that!

Where Does Wise Keep Money?

GUESS WHAT? Wise says ensuring the safety and accessibility of your money is their top priority. 

As of March 13, 2023, approximately 60% of your funds are invested in secure liquid assets, such as U.K. and U.S. government bonds and money market funds.

The remaining 40% is held in cash within trusted banks. Wise is committed to safeguarding your financial assets and making them readily available for your needs.

How is Wise Regulated?

Okay, I’ll tell you how it’s regulated in one region/country. 

Wise Australia Pty Ltd is a financial service provider regulated by the Australian Securities and Investments Commission (ASIC). 

It holds an Australian Financial Services (AFS) license and a limited authorized deposit-taking institution license for Purchased Payment Facilities overseen by the Australian Prudential Regulation Authority (APRA). 

Wise is a reporting entity with the Australian Transaction Reports and Analysis Centre (AUSTRAC). 

To ensure the safety of customer funds, AFS license holders like Wise have specific responsibilities. These responsibilities include implementing secure processes, keeping customers’ money in segregated accounts, and providing proper training to staff.

Under Australian regulations, Wise is authorized to facilitate customer transfers and securely enable customers to hold funds through its multi-currency accounts.

However, it’s important to note that Wise, a global business, is subjected to regulation by international bodies. This means that no matter which currency you’re using, your money is protected, and you can trust Wise to handle your financial transactions securely.

Do you know? Japan K.K. is regulated by the Kanto Local Financial Bureau.

And the list goes on.

Check this to learn how Wise is regulated in other regions, including the U.S.

Wise Customer Service

customer service written on a book

You can rely on Wise Customer Service. If you have questions or need assistance, Wise’s Help Centre is a valuable resource with answers to most queries. You can log in to access personalized solutions for your concerns.

For information about a recent transfer you set up, navigate to the Help Centre for specific options to resolve any issues.

Plus, keep an eye on your email, especially your registered address, for messages from Wise’s support team. They provide self-help OPTIONS in emails to address problems related to your transfers or Wise account.

Should you encounter ongoing issues, check your inbox for any communication from the support team. They may have emailed you instructions to help you troubleshoot problems independently.

If your concern persists or is too complex, contact Wise, as their dedicated support team is AVAILABLE by phone or email to assist you.

Pros and Cons of Wise

Are you thinking about whether to use Wise or not? 

First, it’s important to think about the good and not-so-good aspects.

Pros

Affordable Transfers
Real Exchange Rates
User-Friendly Platform

Cons

Limited Services in Some Places
Transfer Speeds Vary
Limits on Large Transfers

Is Wise Better Than Paypal?

wise vs paypal

Wise and PayPal serve similar purposes as online payment platforms but have key differences that may make one more suitable for specific individuals or situations. 

Wise, formally known as ‘TransferWise,’ is renowned for transparent and cost-effective international money transfers. 

Wise often offers better exchange rates and lower fees than traditional banks, making it an attractive CHOICE for individuals and businesses involved in cross-border transactions.

On the other hand, PayPal is a more versatile platform with a broader range of services, including online payments and money transfers, and it is a widely accepted gateway for e-commerce. 

However, PayPal is known for higher fees, especially for international transactions, and its exchange rates will be less favorable than Wise’s.

Ultimately, the CHOICE between Wise and PayPal depends on your specific needs. Wise may be the better option if you frequently deal with international transfers and prioritize cost efficiency.

However, if you require a comprehensive online payment platform with various functionalities, including e-commerce support, PayPal might be more suitable despite its potentially higher fees.

The choice is yours!

Customer Testimonials of Wise

  • Customer Testimonial 1:
Wise does exactly what it promises. I regularly transfer my US pension to the UK and it arrives almost instantly. I have never encountered a problem after several years of use. MUCH simpler and cheaper than going through the bank system.

Malcolm Blackie says Wise is a simple and cheap transfer system. He shares his experience as proof.

  • Customer Testimonial 2:
Transferring money to my daughter in Spain is quick and easy. Wise takes only seconds and I am always confident that I am getting the best exchange rate with only a tiny fee. Since we left the EU I have found it almost impossible to send gift parcels so it has to be money and Wise makes it easy.

Alison says he transfers money to his daughter through Wise and found it easy as it takes seconds to transfer with the best exchange rate with only a small fee.

  • Customer Testimonial 3:
I have been using Wise for many years and it has always been quick with the deliver. I have never faced any problem.

Clarissa says she has never faced any issues while using Wise and she says the transfers are quick. 

If you ask me my opinion, I would say that I’ve been using Wise for over a couple of years to do transactions and found it helpful. However, you should be well aware of your needs and double-check whether Wise can fulfill them. 

If yes, then no worries!

Learn how to safely receive money through Wise.

Conclusion

As a RECAP, remember this!

Without a doubt, Wise offers international transfers, and it’s a safe multi-currency account.

So, you can TRUST Wise.

FAQs

Wise accounts are considered safe and unlikely to result in scams. The app has over 10 million downloads, a 4.7-star rating on Google Play, and a 4.6 rating on the App Store from over 29,000 reviews, indicating strong user trust. Wise emphasizes user safety with regular updates, bug fixes, and adherence to industry-standard security measures.

No, Wise is not a US bank; it is a financial technology company providing international payments and multi-currency accounts.

Yes, providing your Social Security Number to Wise is safe as they adhere to globally approved best practices for protecting your details.

Was this article helpful?

Photo of author
Author
Allen Morning
I'm Allen Morning, with a background spanning over 15 years in international finance and education from Harvard and Stanford. I founded Currenciap with a vision to demystify and streamline global financial transactions. My journey in finance has fueled my commitment to creating a platform that is both user-friendly and efficient, making international finance accessible to everyone. You can find more about me here.

Leave a Comment