Is Western Union Safe?

Western Union is a global payment company with 500,000+ agents around the world, as well as digital transfer services. You can send money more or less anywhere with Western Union - but the key question for many customers will always be: is Western Union safe?

In this review we will cover

Is Western Union safe and legit?
Is WU safer than traditional banks?
Customer reviews
Security measures taken by WU
Is Western Union safe to transfer money?
Is Western Union safe to keep money with?
Is Western Union safe for large amounts?
Is your personal data safe on Western Union?

Here are some key facts and figures about Western Union:

Established in: 1861
Customer numbers: 150 million
Safety: Publicly traded company, licensed
Security: Western Union uses encryption technology to keep your information safe
Volume of transfers: 34 digital transactions a second + agent services in person
Support: 24-hour customer support

In the US and abroad, services through Western Union can be delivered through Western Union Financial Services, or Western Union International Services. Both are licensed as Money Transmitters by the New York State Department of Financial Services. You can check the licenses for both operating companies on the national multi-state licensing system website.

Additionally, financial companies like Western Union which offer services in other regions also need to be licensed and regulated according to local laws in the destination country. These include the Financial Conduct Authority (FCA) in the UK, FINTRAC in Canada, or AUSTRAC in Australia

Western Union isn’t a bank, but it’s regulated in many of the same ways, making it safe to use. The biggest difference when it comes to Western Union versus banks is the way fees and services are structured.

Western Union doesn’t typically hold customer money - it arranges for payments to be transferred, and has a range of security features to make this safe. We’ll cover some specifics about this later. Where Western Union does hold customer funds - through its prepaid debit card for personal customers for example - services are offered in partnership with selected banks.

Customer reviews on Trustpilot

Here’s a summary of what customers say about Western Union on Trustpilot:

Provider	Number of reviews	Score (out of 5)	Rating
Western Union	21,000+	3.4	Average

Western Union gets an average rating and although some of the negative reviews do mention security issues, more commonly specific customer service problems come up.

When it comes down to security problems, some Western Union customers complained about additional verification checks and fraud prevention measures used by Western Union. These are usually done to keep customer money safe, and to comply with legislation in the US and around the world - the same would happen if you chose to send money with a bank.

Sending high value transfers with Western Union should be safe - but sending a large payment anywhere can be a little nerve wracking.

Some sensible steps to take can include:

Double check all the information. Check if you've fully completed all of Western Union’s verification steps. If you’re sending to a bank account make sure you have all of the required details. If you’re making a cash collection transfer use the recipient’s full name as on their ID document
You can add a security question. In some countries you can add a security question to transfers being sent for collection, which can add peace of mind
Double check your transfer limits. Check your own bank’s transfer limits if you’ll be funding your payment with a wire

Western Union doesn’t typically hold customer money - it arranges for payments to be transferred, and depending on the chosen payment method, the money can get to the recipient instantly.

But Western Union also offers a prepaid debit card which is issued in partnership with Netspend. Netspend is a registered agent of MetaBank which is itself a member of the FDIC. This means that where your funds are held by Western Union as part of the prepaid card, they’re held in a bank which is subject to standard banking regulations and security precautions.

Western Union business accounts can be as safe as a bank account. The difference between the two is that managing the money of your business through a provider is usually cheaper than with a traditional bank.

The same sort of security measures which are in place for personal customers are used to keep business customers secure. For business customers, Western Union also offers a holding balance facility which means they can store customer money for up to 90 days while waiting to make a payment. In this case, money is typically safeguarded - which means it’s held by a licensed partner institution and kept separate from Western Union’s own funds.

Western Union, including both the digital payment services, and the agent network, has a legal duty to keep your personal data safe. Personal data can be shared in some situations - although consumers may be able to request that information sharing is limited in some cases.

Here is how Western Union uses some key types of personal data - and whether or not consumers can limit sharing:

Data type	Does Western Union share?	Can consumers limit sharing?
Data used to facilitate transactions, or which must be shared by law	Yes	No
Data used by Western Union to market their services to you	Yes	Yes
Data used for joint marketing with other financial companies	Yes	No
Data to allow Western Union affiliates to market to you	Yes	Yes

In the US Federal laws require financial companies to tell you what data they’re collecting and how they may use or share it. Different states have slightly different rules about what information must be shown to consumers - but you can find the full privacy statement and disclosure for Western Union online.

Financial companies like Western Union are also obliged to hold some data for a period of time - after 6 to 10 years.

Western Union won’t hold data for longer than is required by law, to complete any ongoing transactions, or resolve any problems which may arise with a payment.

Personal data Western Union may collect can include:

Your contact information, for example your name, postal address, e-mail address, telephone number
Personal information like date of birth, gender, citizenship, occupation, marital status, and SSN
Transaction information
Business related information about your account and how you use Western Union services
Technical information like your IP address
Compliance information such as identity verification processes, and sanction checks

Unfortunately, criminals can try to extract money from victims through Western Union - just as they might through any other financial service provider.

Companies which offer cash collection payments, like Western Union, can be especially attractive to fraudsters and scammers, because cash payments can be arranged so quickly and are then very hard to trace. Once you realise you’ve been the victim of fraud, your money may have already gone.

Sensible steps you might want to take to stay safe when using Western Union - or any other payment provider - includes:

If something seems too good to be true - don’t feel under pressure to send a payment quickly if you’re suspicious
Learn more about common scam types - they change and evolve over time
Check your payment provider’s rules - for example, some services prevent business transactions and should only be used to send money to friends
If you’re buying something, maybe avoid paying using a money transfer to an individual

To send money with Western Union at an agent location you’ll simply need to call into a local branch with your government issued ID document. Make sure you have the right details depending on how you want your transfer to be received - your recipient’s full name for cash collection, or bank account details for a bank transfer.

If you want to send money online or in the Western Union app, you’ll need to create an account:

Download the Western Union app or open the desktop site
Click Sign up
Enter your personal details, email, and a password
Follow the onscreen prompts to add your information and get verified if required.

Depending on where you’re sending a payment to, and the value of the transfer, you may also need to provide documents for verification. These can include: