[Jiggly]

Banks cover fraudulent activity, but It's the Inconvenience caused with the loss of funds that's the Issue.

Some financial Institutions can take weeks to replenish funds, which doesn't do much good when repayments on the family home are due on the day.

Right, because ya know,  we all pay our rent/mortgages with credit cards.

Precisely.

Furthermore, a lot of my work colleagues actually rely on their CC for weekly groceries, so having their card stripped of all funds will have a significant negative Impact on their financial state.

I would like to expand on this, in addition, most large purchases, such as housing or vehicles, rely on credit ratings when it comes to the average american (or other nationality) families. Consider this, as soon as you allow fraud to come up on their records, you may have ruined that family's chance of a family home that would help their children grow and afford a better life.