Should the banks have no incentive to make sure fraud isn’t happening? They’re making profit off the deal and are benefiting from the fraud. If they had no down

Should the banks have no incentive to make sure fraud isn’t happening? They’re making profit off the deal and are benefiting from the fraud. If they had no downside from fraudulent transactions then wouldn’t they have zero reason to do any sort of due diligence on student loans? It’s not like they have to worry about the debt going away via bankruptcy