Yeah, the money has to come from somewhere. But the point is, the loss could've been mitigated by making better decisions. The bank has less incentive to change

Yeah, the money has to come from somewhere. But the point is, the loss could've been mitigated by making better decisions. The bank has less incentive to change their behaviour when the customer will ultimately cover the cost of their mistake. Say for example there was a regulation that said banks couldn't increase fees because of theft (as a thought exercise, not a practical suggestion). The 45 million loss would directly affect their profits. Lets pretend this happened on a yearly basis on average, it makes good business sense to spend 20 million a year on security to prevent it happening. If they can lose 45 million a year but know they can recuperate 30 million by making the customer cover the cost of losses, it becomes cheaper to charge the customer than invest in security.