There is a very simple solution: pass a law that automatically absolves customers of any fraud, and places burden of proof on the banks. Transactions reported fraudulent should be automatically reversed, unless the bank can provide proof (satisfying the standards expected in civil courts) that the customer was at fault.<p>As an example, this was largely the case with transactions not involving PINs (signed-for purchases). Recent introduction of EMV (chip-and-pin cards) was really done to shift responsibility for such transactions back onto the customers and reduce banks' losses.<p>This is also the case with stolen cards (in the UK and Ireland, at least): losses related to such cases are covered by the bank, even for losses occurring before the card was reported stolen. This is the reason banks implement various pattern-matching techniques to try and detect such transactions as soon as possible.