That's how you protect yourself': Kevin O'Leary says you should stop using your credit card like this — offers an alternative that is easy and legal

With the rise of technology and online shopping, credit card fraud and data breaches are a constant worry. However, "Shark Tank" star Kevin O’Leary says he has a simple yet effective strategy to safeguard your finances in the digital realm.

He suggests a dual credit card approach.

“I recommend everybody have at least two credit cards, the first credit card is one that has a very low limit — let’s say $2,000. And that’s the number you use on all the online services,” he said in a YouTube video posted to his official channel.

The logic is straightforward. If this card’s details are compromised, the financial damage is capped at a manageable level: “If they get hacked, nobody can spend more than $2,000. That’s how you protect yourself.”

The second card in O’Leary’s plan serves a different purpose. It’s meant for offline transactions, where the risk of digital theft is thought to be lower.

“The other card is the one you use when you actually buy things that are not online and perhaps those purchases can be much more expensive,” he said.

In other words, the second card can have a higher limit, suitable for more substantial purchases. The separation of online and offline expenses not only has the potential to enhance security, but also helps with easier tracking and managing expenses.

A modern menace online and offline

While many people are aware of the potential risks from using credit cards online, it's important to note that offline transactions are not risk-free either.

Fraudsters can gain your information through an ATM with a skimmer installed, or by point of sale payment terminals at a brick-and-mortar retailer that have been hacked. In 2022, for example, Metro Vancouver Transit Police reported that card skimmers had been installed at several Compass vending machines at Canada Line stations. Police did not report if any customers had been victims of fraud.

Nevertheless, it's generally sound practice to spread financial risk as O’Leary recommended. Credit card fraud and online financial scams are not just anecdotal concerns but are backed by alarming statistics.

Statistics Canada reported that one in six businesses were impacted by cybersecurity incidents in 2023, and just under 48,900 cybercrime fraud cases, including identity fraud and identity theft, were reported by police in 2023. This is nearly double the amount reported in 2019.

Considering the widespread use of credit cards, the potential financial losses to consumers are significant. Payments Canada reported that, of the one in ten Canadians who were victims of fraud in the first half of 2024, 38% found unauthorized transactions on their banking or credit card statements and 18% had their credit card information stolen.

As of 2024, Canadian retail banking customers were projected to lose as much as $569 million to fraud, triple the figure from 2021.

Sources

1. Global News: Metro Vancouver commuters warned about card skimmers at Canada Line stations, by Simon Little (Apr 1, 2022)

2. Metro Vancouver Transit Police: Public Advisory: card skimmers found in three TransLink Compass Vending Machines (Apr 1, 2022)

3. Statistics Canada: How much is fraud affecting Canadians and Canadian businesses? (Mar 13, 2025)

4. Payments Canada: Majority of Canadians alter payment habits due to fraud concerns — 13 per cent affected by payment fraud in the past six months (Jul 29, 2024)

5. BioCatch: Canadians expected to lose more than $569 million to scams in 2024 (Oct 30, 2024)