'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 in easier tracking and managing expenses.