Bank transfers or wire transfers have been around for a while. For many years, they were the go-to for local and international transactions. However, the advent of cryptocurrency has created a worthy contender. The innovation behind digital currency involves decentralised organisations backed by blockchain technology.

We are here to settle an age-long argument by comparing the safety of transacting with bank transfers versus crypto transfers. Both methods have their pros and cons regarding security for international payments. The safety of either method depends on factors like fraud protection, regulatory oversight, and transaction reversibility.

This article will explore bank transfers vs. crypto transfers and show you which is safer for international payments.

Are bank transfers safe for international payments?

Bank transfers are generally considered a safe way to transfer money. However, taking precautions is crucial to avoid risks like fraud and human error.

What are the safety features of bank transfers?

Here’s a breakdown of the safety aspects of bank transfers.

1. Robust security

Banks employ strong security measures to protect their customers. These measures include encryption and two-factor authentication to protect transactions and prevent unauthorised access.

2. Regulation and consumer protection

Banks are heavily regulated, offering legal protections such as chargebacks and fraud investigations.

3. Reversibility

A bank transfer can sometimes be reversed if an error occurs or fraud is detected.

4. Direct transfers

Bank transfers are direct transfers between two banks with minimal intermediaries. Compared to other payment methods, they reduce the risk of fraud and data theft.

5. Real-time monitoring

Banks monitor transactions in real time to detect and prevent fraudulent activity.

What are the potential risks and safety concerns with bank transfers?

A 2024 report on financial fraud for banks and transfer services noted that 35% of banking services reported over 1,000 fraud attempts. Here are the most common risks of bank transfers.

1. Human error

The most significant risk is transferring money to the wrong recipient, as mistakes can be challenging to reverse.

2. Lack of consumer protection

Unlike some other payment methods, bank transfers may lack the same level of consumer protection. This makes it harder to recover funds if a mistake is made.

3. Fraud

Scammers may try to trick individuals into making bank transfers. It’s important to be vigilant and verify the recipient's identity before sending money.

How to reduce the potential risks with bank transfers

• Be mindful of urgent requests – Scammers often create a sense of urgency to prompt quick action without verification. Whenever you pick up a whiff of urgency, be suspicious.
• Verify recipient details – Always double-check the recipient’s details before initiating a transfer and verify them verbally with the recipient if possible.
• Research the recipient – Research the individual or company requesting the payment to ensure they are legitimate.
• Monitor bank statements – Regularly check your bank statements for any suspicious transactions.
• Use strong passwords – Use strong passwords and security questions for your bank and other accounts.
• Be aware of scams – Scammers may use fake names or information. Be cautious and verify all details before sending money.

Read also: Top five money transfer scams and how to avoid them

Are cryptocurrency transfers safe for international payments?

Cryptocurrency transfers offer an alternative to bank transfers, with unique security advantages and risks. The decentralised nature of blockchain technology makes transactions tamper-proof, but this also means there is little room for reversibility in case of mistakes or fraud.

What are the safety features of crypto transfers?

Crypto transactions have some security features. These include:

1. Blockchain security

Cryptocurrencies operate on blockchain technology, which records transactions in an immutable ledger. This prevents tampering and fraud.

2. No intermediaries

Unlike bank transfers, crypto transactions do not rely on banks or payment processors, reducing the risk of third-party fraud.

3. Encryption and anonymity

Crypto transactions use strong encryption, and users can transact pseudonymously, reducing identity theft risks.‍

4. Fast international transfers

Crypto transfers often take minutes compared to the days required for international bank transfers.

What are the potential risks and safety concerns with crypto transfers?

Stolen funds and illicit crypto transactions have been on a steady rise. There was a 21% YoY  ($2.2 billion) in stolen crypto funds in 2024 according to a Chainalysis report.‍

1. Irreversibility

Once a cryptocurrency transaction is confirmed, it cannot be reversed. This makes mistakes costly and increases the risk of scams.

2. Lack of regulation and consumer protection

Unlike bank transfers, most cryptocurrencies are not regulated by financial authorities. This means there is no legal recourse if funds are lost or stolen.

3. Hacking and theft

Crypto exchanges and wallets are frequent targets for hackers. If security measures are inadequate, funds can be lost permanently.

4. Volatility

Cryptocurrency values fluctuate significantly, which can impact the value of transfers.

How to reduce the potential risks with crypto transfers

Here are some tips on how to protect your data and funds when transacting with crypto.

• Use secure wallets – Store cryptocurrency in a secure hardware or software wallet instead of leaving it on an exchange.
• Double-check recipient addresses – Crypto addresses are long and complex; a single error can result in lost funds. Use QR codes or copy-paste addresses carefully.
• Enable two-factor authentication (2FA) – Secure accounts with 2FA to prevent unauthorised access.
• Avoid public Wi-Fi when transacting – Public networks can expose transactions to hacking attempts.
• Use reputable exchanges – Conduct transactions on well-known and regulated platforms to reduce the risk of fraud.

Read also: How to receive USDC on Grey

Which is safer: bank transfers or crypto transfers?

The safety of international payments depends on individual needs and risk tolerance. Here is a final comparison:

• Bank transfers are safer for those prioritising regulation, fraud protection, and reversibility. They are ideal for businesses and individuals who need strong consumer protection and legal recourse.
• Crypto transfers are safer for those prioritising decentralisation, speed, and lower costs. However, they require careful handling of security measures to avoid loss.

Ultimately, the choice depends on the user’s needs, experience, and willingness to manage the risks. Understanding both options will help you make informed decisions about international payments.

Read also: How to manage international payments while living abroad

Managing international payments with ease

Opting for a reliable and secure payment solution for your international transactions will protect you from incurring financial losses. There are pros and cons to using bank transfers or crypto transfers for international payments. Hence, choosing a digital banking solution like Grey helps you maximise the benefits of both options.

**Find out how Grey ensures optimal security.**

With Grey, you can now transact with USDC without hidden fees or delays. The multi-currency feature allows you to hold, send and receive international payments in US dollars (USD), British pounds (GBP) and Euros (EUR). You can also convert to local currencies within minutes.

Grey’s robust layers of security ensure that your data and funds are well-protected. Sign up today or download the app to enjoy safe international transactions.

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