Is Wise Safe to Use? Here’s What You Need to Know
There are plenty of apps and online platforms you can use to send and receive money internationally. Wise, formerly known as TransferWise, is one of them.
But how exactly does Wise work, and what services does it provide? More importantly, is it a legitimate company? Can you trust it with your money?
How Does Wise Work? Is It Legit?
Founded in 2011 by businessmen Taavet Hinrikus and Kristo Käärmann,Wisequickly established itself as a money transfer service, attracting attention from Bitcoin enthusiasts. Due to regulatory pressure, Wise moved away from cryptocurrency in 2013, and has since focused solely on international money transfers.
In 2021, the company rebranded from TransferWise to Wise, went public on the London Stock Exchange, added more features to its online platform and app, and expanded its operations. Today, Wise’s worth is measured in billions of dollars. Obviously, all of this shows that Wise is a perfectly legitimate company. But what exactly does it offer to customers?
For a start, Wise is available in more than 170 countries worldwide, and enables users to hold and convert money in over 50 currencies. This is a lot more than many other companies offer, so Wise is also suitable for freelancers and businesses. Wise also has its own debit cards, but they’re not available everywhere.
Setting up an account with Wise is quick and easy, though you may have to take some additional steps to verify it, such as confirm your identity by sending a photo of a government-issued document. Once you do that, you can also download the Wise app (available on both iOS and Android).
But what really separates Wise from competition are two things: the fees are low compared to other providers, and most international payments arrive pretty much instantly. It should be noted, however, that this depends on the country and currency, and may take longer if intermediary banks are used.
Is Wise Secure?
Now the most important part: security. Wise is based in the United Kingdom, where it has been authorized as an Electronic Money Institution by the Financial Conduct Authority (FCA). In the United States, it is registered with the Financial Crimes Enforcement Network (FinCEN). Meanwhile, in Belgium and the European Economic Area (EEA), Wise is treated as a Payment Institution.
Wise also has branches in several other countries: Australia, Brazil, Canada, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, and United Arab Emirates (UAE). In each of these countries, it is regulated by appropriate authorities, much like other banks and financial institutions.
This may not be the most exciting information in the world, but it’s important. When you’re dealing with money, your top priority is to keep it safe, which is why you should always strive to work with legitimate, regulated institutions. The fact that governments around the world are keeping an eye on Wise is a good thing, from a customer’s perspective.
On the cybersecurity front, Wise has a dedicated fraud team and a security operations team, and also runs abug bounty programthrough the platform BugCrowd. Wise encrypts all data using asymmetric encryption, and is regularly audited. This is at the core of Wise’s security practices, but there are several layers.
As a user, you may usetwo-step verification, set up a secure code, or both. With two-step verification, you can choose between three options: you can use the Wise app (which means you’ll need to confirm each desktop log-in attempt via the app on your smartphone); confirm your login attempts via a one-time text message code; or employ an authenticator (a third-party app, like Google Authenticator or Duo Mobile).
On top of this, you can set up your own secure communication code. This is a unique code that will appear on all communications between Wise and you. So, for example, if you have this feature enabled, the code will be included in every email you receive from Wise. This is a very convenient way to add another layer of security, and render any potential phishing attempts ineffective.
As stated in theprivacy policy, Wise gathers all kinds of technical information about your device and browser, as well as details about your transactions and marketing preferences. Wise further collects and stores biometric data, but only in certain circumstances—for example, when you agree to verify a document by taking a selfie. The company retains the right to share this data with affiliates, subsidiaries, advertising networks, and law enforcement (in case of a subpoena, warrant, and such).
How to Protect Your Wise Account
Ultimately, your security is your responsibility. As safe as Wise may be, there are some additional steps you can take to secure your account. Here’s a checklist of things to keep in mind.
If you do all of the above, the chances of your account being jeopardized in some way will decrease significantly. With that said, breaches still happen, so it’s always a good idea to have a few backup options.
If you’re a freelancer, Stripe, Escrow, and Payoneer are worth looking into. Especially Payoneer, because it’s popular, available in most countries, and has its own debit card. For online shopping and similar activities, consider getting avirtual credit card. They offer more security and privacy than traditional cards, which will go a long way in mitigating damage in the event of a cyberattack.
Handle Your Money Wisely
Wise may not suit everyone, but if you frequently make and receive international payments, it’s one of the best options around. It’s user-friendly, reliable, regulated, and secure.
But regardless of your needs, you should always strive to use safe payment processors. And if you think Wise is not for you, there are plenty of alternatives worth your consideration.
Looking for safe options to pay for your online or even in-person purchases? Here are the four best ways you can keep your finances secure.
Sometimes the smallest cleaning habit makes the biggest mess.
Every squeak is your PC’s way of crying for help.
Unlock a world of entertainment possibilities with this clever TV hack.
These plugins will make you wonder why you used Photoshop in the first place.
Windows is great, but adding this makes it unstoppable.
