Why would I care if the banks took a hit? If fraud was hurting their margins significantly we would see the government step in. The banks would also do more to prevent it. The US just switched over to chip cards.
Because you're paying for it with your money. They can afford to take a hit (and can afford the insurance for such losses) because of the fees they charge you directly, and the money they make utilizing your principle for other purposes while it's there.