A complete guide to KOHO's security, deposit insurance, fraud protection, and what happens to your money if something goes wrong.
Yes, KOHO is safe. Your money is held at Peoples Trust, a federally regulated CDIC member institution. Deposits are insured up to $100,000. KOHO uses bank-level encryption, two-factor authentication, and instant card freeze capabilities.
KOHO is a financial technology company, not a chartered bank. This distinction matters because it means KOHO itself does not hold your deposits. Instead, your funds are held in trust at Peoples Trust, which is a federally regulated trust company and a member of the Canada Deposit Insurance Corporation (CDIC).
This structure means your money receives the same deposit insurance protection as funds held at any of Canada's Big Five banks. CDIC insures eligible deposits up to $100,000 per depositor, per member institution, per category. Since KOHO was founded in 2014, no customer has lost money due to a security breach or institutional failure.
The Canada Deposit Insurance Corporation is a federal Crown corporation that protects eligible deposits at member institutions. Coverage includes savings accounts, chequing accounts, and term deposits up to $100,000 per category. CDIC has protected Canadian depositors since 1967, and no one has ever lost a dollar of insured deposits at a member institution.
Peoples Trust, where KOHO holds your funds, has been a CDIC member since its founding. This means your KOHO balance is covered by the same insurance that protects deposits at TD, RBC, BMO, CIBC, and Scotiabank.
Beyond deposit insurance, KOHO implements multiple layers of security to protect your account and personal information:
If KOHO were to cease operations, your deposits would remain safe at Peoples Trust. Since Peoples Trust is the actual custodian of your funds and is independently regulated by the Office of the Superintendent of Financial Institutions (OSFI), your money does not depend on KOHO's continued existence.
In a wind-down scenario, you would be notified and given the opportunity to withdraw your funds. If Peoples Trust itself were ever to fail (which has never happened), CDIC insurance would cover your eligible deposits up to $100,000.
Many Canadians wonder whether a fintech like KOHO is as safe as a traditional bank. The answer is that the core protection -- CDIC insurance -- is identical. Your money at KOHO receives the same $100,000 deposit insurance as money at TD, RBC, or any other CDIC member.
In some ways, KOHO may be safer for everyday use than a traditional bank. The instant card freeze feature, real-time transaction alerts, and the fact that KOHO is a prepaid card (not linked to a credit line) mean that your exposure to fraud is limited to the balance on your card, not an extended credit limit.
KOHO operates under federal regulations as a prepaid card program. Peoples Trust, which holds your funds, is regulated by OSFI, the same body that regulates Canada's largest banks. KOHO is also registered with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) for anti-money laundering compliance.
KOHO uses the same encryption and security standards as major banks. No system is immune to all threats, but KOHO's security infrastructure is built to the same standards as traditional banking. Using a strong password, enabling two-factor authentication, and monitoring your transaction alerts significantly reduces any risk.
KOHO collects personal information necessary for account setup and regulatory compliance, including your name, address, date of birth, and SIN. This data is encrypted and stored securely. KOHO's privacy policy outlines exactly what data is collected and how it is used. KOHO does not sell your personal information to third parties.
KOHO has grown to serve millions of Canadians since launching in 2014. The platform has processed billions of dollars in transactions without a major security incident. The combination of CDIC insurance through Peoples Trust, Visa's zero liability protection, and KOHO's own security features creates a multi-layered safety net that rivals or exceeds traditional banking.
For Canadians who want the safety of insured deposits combined with the benefits of cashback rewards, budgeting tools, and credit building, KOHO delivers on both fronts.
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Yes. KOHO is safe to use in Canada. Your deposits are held at Peoples Trust, a CDIC member institution, insured up to $100,000. KOHO uses bank-level encryption and allows you to freeze your card instantly through the app.
Yes. Your funds are held at Peoples Trust, which is a member of the Canada Deposit Insurance Corporation. Your eligible deposits are insured up to $100,000.
No. KOHO is a regulated financial technology company. Your funds are held in trust at Peoples Trust, a federally regulated institution. KOHO cannot access or redirect your deposits.
Your deposits remain safe at Peoples Trust, which is CDIC insured. You would be able to withdraw your funds through the wind-down process.
KOHO offers cashback, budgeting tools, and credit building that many banks lack. However, it does not offer mortgages, loans, or physical branches. For everyday banking with rewards, KOHO is an excellent choice.