Safer And Smarter Spending

Safer bank transactions:

Hundreds of millions of people worldwide travel and shop during the festive seasons that include Easter & Christmas holidays among Christians & Idul fitr and Haj festivities among Muslims. In Kenya, consequently, thousands of people travel to visit their kin and relatives especially in rural areas during the end of each year Christmas season. It is precisely in these moments of increased spending and lowered vigilance that fraudulent activity tends to spike.

The 2025 Financial Sector Stability Report by the Central Bank of Kenya (CBK) notes that financial losses from cyber fraud in the banking sector nearly quadrupled in 2024, reaching K Sh 1.5 billion (B). With a growing reliance on cards, mobile, and online banking, scammers exploit moments of distraction, using tactics that feel urgent, familiar, or convenient.

Therefore, protecting personal cards and their related data/information during the festive seasons requires diligence. People are better advised to always shop on verified websites or with reputable sellers, avoid clicking on unsolicited links from emails, texts, or social media, and to set up bank alerts to monitor transactions in real-time, and to keep their apps and devices updated to the latest security standards.

According to Ms. Charity Muchiri, Assistant Manager of Cards Business at Family Bank, the holiday season is the peak time for holiday-themed phishing scams, SIM-swap fraud, and social-engineering tactics. “These fraudulent practices that target unsuspecting people as they shop for the festivities pose a real danger and many people lose millions in the holiday season excitements,” Ms. Muchiri explains.

But by understanding the uses and risks of each type of card, and by taking proactive steps to protect money, citizens in the country and other parts of the world can enjoy the festive seasons safely. With awareness and caution, shopping, travelling, and celebrating can be both joyful and secure.

Debit Cards:

Debit cards allow individuals to spend money directly from their bank accounts, making for everyday purchases that are convenient for goods such as groceries, & for transport, and small gifts. During the festive season, cards are ideal for quick payments at shops, restaurants, or online stores. However, it is wiser for individuals not to keep all their funds on a single debit card. People are advised to spread their money across accounts or use combinations of cards to minimize the impact if a card is lost, stolen, or compromised. People must always and regularly monitor transactions and set up instant alerts for every purchase to spot any unusual activity immediately.

Credit Cards:

Credit cards allow individuals to borrow money from their bank for later repayment with this practice helping in the building of good credit history. The cards are especially useful for larger purchases during the festive season; such purchases cover goods such as electronics, or pay for travel bookings, or for online shopping sprees. Many credit cards also offer perks such as reward points, cashback, or extended warranties, which can be a bonus during holiday spending. However, individuals are advised to remain cautious about overspending and accumulating needless debt that can quickly outweigh and diminish the benefits. Individuals are always urged pay attention to their credit limit, review statements regularly, and report any unfamiliar transactions promptly.

Prepaid Cards:

On the other hand and notably, prepaid cards offer a safer alternative to debit and credit cards, as they only allow spending of the money loaded onto them. This makes them excellent tools for budgeting, controlling holiday expenses, or giving as gifts. They are also perfect for travel, as they reduce exposure of an individual’s main bank account while abroad. Parents can use them to provide children with limited spending money during holiday trips or outings.

“In the last two years, about 30 per cent of Family Bank’s prepaid cards have been issued to minors given that it is a safer alternative to debit cards. This trend reflects the growing need for safe, trackable, and limited-use payment options for young spenders, especially during the holiday season,” Ms. Muchiri further explains.

Even though prepaid cards are safer, lost or stolen cards can still be misused, so treat they must be handled with care and balances be checked regularly.

Multicurrency Cards:

For those travelling internationally during the festive season, multicurrency cards are designed to make spending abroad convenient and cost-effective. They allow persons to hold multiple currencies, avoid high foreign transaction fees, and they also sometimes offer additional perks such as airport lounges access. The cards are ideal for overseas shopping, paying for hotels, or dining in foreign countries.  However, utmost caution must be exercised given that if a multicurrency card is lost or stolen abroad, recovering funds can be more complex. Individuals must always carry backup payment options and notify their bank of their travel plans.

Virtual Cards:

Virtual cards are ‘digital-only’ cards generated specifically for online purchases. Each transaction uses a unique card number, expiration date, and security code, which significantly reduces the risk of fraud. They are perfect for online shopping during the festive season, especially for gift purchases, subscriptions, or e-commerce platforms that the individuals do not frequently use. Despite being very secure, virtual cards can still be at risk if a person’s online banking credentials are compromised. To stay safe, the persons using the cards must ensure to have strong, unique passwords for banking apps; they must also enable two-factor authentication, and avoid using public Wi-Fi when shopping online.

By understanding the purpose and risks of each type of card, and by taking simple precautions, a person can shop, travel, and celebrate the yearly festive seasons with confidence and peace of mind. They ought to immediately contact their banks as soon as they notice unfamiliar or suspicious transactions. Equally, they must safeguard their passwords and avoid using public Wi-Fi for financial transactions and also monitor their accounts regularly. They must report any unusual activity promptly.