You said debit cards were not generally not covered for fraud. That is incorrect. There are specific rules, but they are covered.
It also depends on the banking institution. My credit union does the following:
1. Receive report about fraud.
2. Closes the old card; opens a new one.
3. Pick up new card at credit union and file fraud report. This also can be done over the phone (fraud report) and by mail (new card).
4. Money is restored to the account within 24 hours.
This happened to me once with my debit card. Not used anywhere at the time and the card was compromised. Had it happen three times on credit card, as well. In both cases, the credit union took care of the problem.
They shrugged their shoulders and said, until this country has chip implanted credit and debit cards, this problem will continue. They went on to say that fraud occur much more than people think.