> But my money is not on the line. Well, I tend to think in context of a debit card, but covering your ears and screaming "zero fraud liability" doesn't solve

> But my money is not on the line. Well, I tend to think in context of a debit card, but covering your ears and screaming "zero fraud liability" doesn't solve everything. You're still incurring costs and hassle getting your account detangled after a fraud, and the trouble for getting the cards reissued. The bank itself is going to have to deal with the costs of insurance and payments it was unable to recover. Eventually, somehow we're paying for that in higher fees or worse rates. It also tends to undermine the fundamental legitimacy of the bank. Remember when banks tended to be big free-standing buildings with huge visible vaults? The message was "we're keeping your money safe." Not "we don't keep it safe, but we have really awesome insurance when we inevitably mess it uo!"