I think its because fraud justifies CC companies charging their fees - i.e. consumers want peace of mind, so they don't complain when CC takes 3-4% cut from mer

I think its because fraud justifies CC companies charging their fees - i.e. consumers want peace of mind, so they don't complain when CC takes 3-4% cut from merchants on transactions. If fraud was non existent then CC companies couldn't justify those fees (i.e. insurance).