Is KOHO safe to use in Canada?

In general, KOHO appears safe to use in Canada, but the exact protection for your money depends on how your account is set up.^1,2 This article will help you understand KOHO’s safety and security features.

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KOHO says it protects customers through:^1,2

• safeguarding via partner bank Peoples Trust
• up to $100,000 in CDIC-eligible protection once you opt in to Earn Interest
• Mastercard Zero Liability Protection on the prepaid card
• app security features such as biometrics, two-step verification, and instant card lock
• encryption, monitoring, and compliance controls

The important thing to understand is that KOHO isn’t a bank, and not every balance is protected in the same way.

A bit about KOHO in Canada

KOHO is a Canadian financial app built around a prepaid Mastercard and app-based money tools.^2,3 It offers spending, saving, credit-building, and borrowing features in one place.

A few quick facts:

• KOHO isn’t a bank
• the KOHO Mastercard Prepaid card is issued by KOHO Financial Inc.
• KOHO says it serves more than 2.5 million customers
• some KOHO balances may be eligible for CDIC protection, depending on the product

How does KOHO protect your money?

KOHO highlights a few main protections for customer money:

1. It works with a federally regulated banking partner

KOHO partners with Peoples Trust, a federally regulated bank, to safeguard customer funds.^1,2

This is important as KOHO is a fintech company rather than a bank. Some of the safety measures depends on how customer funds are held through KOHO’s banking arrangements.

2. Some balances can be eligible for CDIC protection

According to KOHO, once you opt in to Earn Interest, up to $100,000 of your funds are eligible for CDIC protection.¹

The company notes that these funds are placed in trust with one or more CDIC member institutions.^1,4 CDIC explains that eligible deposits can be protected up to the coverage limit, but coverage depends on how deposits are structured and which member institution is holding them.

This is also where one of the key limitations comes in. KOHO states that accounts not earning interest aren’t eligible for CDIC protection.

If deposit protection is your main concern, it’s worth checking exactly where your money is held and whether it’s part of the Earn Interest setup.

3. The KOHO card includes Mastercard Zero Liability Protection

KOHO’s prepaid, reloadable Mastercard is covered by Mastercard Zero Liability Protection.^2,5 According to Mastercard, this protection covers unauthorized transactions, as long as the cardholder used reasonable care and reported the issue promptly.

This can be useful if your card details are stolen or used without permission.

What account security features does KOHO have?

KOHO also promotes several account-level protections.

Biometrics and login protection

KOHO says accounts can be secured with:¹

• face ID or device biometrics
• a password or passcode
• two-factor checks when resetting a password

These are important protections, especially if your phone is lost or someone tries to access your account.

Two-step verification

KOHO uses two-step verification as an extra layer of security.¹ This can help reduce the chance of someone getting into your account using your login details.

Instant card lock

KOHO mentions the option to lock your card right away in the app if it’s lost or stolen.¹ This is a practical protection for day-to-day use, because it lets you react quickly.

Monitoring and cybersecurity

KOHO confirms using:¹

• firewalls
• endpoint detection and response
• 24/7 security monitoring

It also says it actively monitors the dark web and open-source websites for compromised information.
These measures don’t remove all risk; however, they show that KOHO includes security controls in addition to the account-level ones.

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Is your personal data safe with KOHO?

KOHO explains that data sent between its app or website and KOHO is encrypted using TLS 1.2 or higher.¹ Also, the personal data stored in its systems is protected with AES-256 encryption. It also uses embedded identity-validation technology during signup.

Taken together, these measures show how KOHO is protecting user data:

• encrypted data in transit
• encrypted stored data
• identity checks during onboarding
• controlled access to account features

No financial app can remove all risks, but KOHO describes several technical measures implemented for keeping accounts and data safe.

Is KOHO regulated?

KOHO is regulated as a money services business by FINTRAC.²

It also has:

• a SOC 2 Type 2 report
• PCI DSS controls for payment card data

Those points don’t mean KOHO is without risk, but show there are formal compliance and control frameworks.

Can you still get scammed?

Yes. Like any financial app, KOHO users can still be targeted by scams, phishing, account takeover attempts, or social engineering.

The app’s built-in protections can help, but they aren’t a replacement for certain precautions.

It’s still smart to:

• keep your phone and email secure
• use biometrics and verification features
• lock your card immediately if it goes missing
• review transactions regularly
• be cautious with messages asking for money or account details

So, is KOHO safe?

KOHO appears to be a legitimate fintech product, with several compliance and security measures implemented. Its strongest safety points are:

• safeguarding through partner bank Peoples Trust
• CDIC-eligible protection on some balances
• Mastercard Zero Liability Protection
• in-app account controls
• encryption and security monitoring
• compliance measures including FINTRAC registration

The key thing to understand is that not all KOHO balances are protected in the same way. If you’re planning to keep a larger amount of money in KOHO, check whether your funds are held in an account eligible for CDIC protection.

KOHO safety FAQ

Is KOHO a bank?

No. KOHO is a fintech company, not a bank.

Is KOHO insured through CDIC ?

Not by default or in every case.^1,4 The company notes that once you opt in to Earn Interest, up to $100,000 of your funds are eligible for CDIC protection. However, accounts not earning interest aren’t eligible for CDIC protection.

Is KOHO safe for everyday spending?

KOHO appears safe for everyday use, offering features such as card-network fraud protection, app security controls, and instant card lock.

Is KOHO safe for storing large balances?

It can be, but you should check how your funds are being held and whether they’re eligible for CDIC protection, especially if you’re holding larger amounts.

Final thoughts

KOHO offers several protections for Canadians, including safeguarded funds through a banking partner, limited CDIC-eligible protection, card fraud protection, encryption, and app-based security controls.^1,2,4,5

Overall, KOHO appears to be a legitimate fintech product with compliance and security measures. You should understand which protections apply to your specific KOHO setup, especially if deposit insurance is important to you.

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Sources:

1. KOHO security page
2. KOHO legal page
3. KOHO homepage
4. CDIC coverage guidance
5. Mastercard Zero Liability Protection

Sources checked on July 29, 2026