Is KOHO a Scam? A Safety & Legitimacy Review (2026)
Is KOHO safe to use? We investigate the legitimacy of KOHO Financial, its banking partners, and its security features to answer: Is it a scam?
In the world of online banking, skepticism is healthy. When you see an app promising “no fees,” “cash back,” and “credit building,” it is natural to ask: “Is this too good to be true? Is KOHO a scam?”
The short answer is: No, KOHO is not a scam. It is a legitimate Canadian fintech company that has been operating since 2017 and serves over 1 million Canadians.
But don’t just take our word for it. Let’s look at the facts, the partners, and the security behind the app.
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1. The Banking Partner: Peoples Trust
KOHO is a technology company, not a bank. This is a crucial distinction. However, they partner with Peoples Trust Company, a federally regulated financial institution.
- When you load money onto your KOHO card, it is held by Peoples Trust.
- This means your money is in the regulated banking system, not just sitting on a startup’s server.
2. The Investors
Scams usually operate in the shadows. KOHO is backed by some of the biggest investors in the world, including:
- Drive Capital
- Portag3 Ventures (connected to Power Corporation, which owns Great-West Life and IG Wealth Management).
These are institutional giants that do massive due diligence.
3. Security Features
The KOHO app has security features that often beat traditional banks:
- Biometric Login: FaceID/TouchID support.
- In-App Card Lock: You can freeze your card instantly if it’s lost.
- Zero Liability: As a Mastercard holder, you are protected from unauthorized purchases under Mastercard’s Zero Liability policy.
Why Do People Ask “Is It A Scam?”
Usually, negative reviews come from:
- Account Locks: KOHO has strict fraud detection. Sometimes legitimate users get locked out temporarily while they verify their identity. This is actually a sign that their security is working.
- Misunderstanding Credit Building: Some users don’t understand that the subscription fee is the product, and get upset about the monthly charge.
Conclusion
KOHO is a safe, legitimate, and regulated way to manage your money. It offers the digital convenience of a tech company with the regulatory backbone of a trust company.
For more details, read our guides on Is KOHO CDIC Insured? and KOHO Fraud Protection.
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