How do insurance companies stop people from emptying their house and then burning it down? How do brick and mortars prevent people from paying with photocopied money? It is fraud, and it is generally illegal. Huge amounts of money is spent on detecting and deferring fraud attempts.
It's entirely possible to claim your card was skimmed and have your bank refund the money. However, if they then find out that the ATM used to withdraw your entire balance is the same ATM you've used for years, and your face is on the ATMs security camera at the time of withdraw, then you're in for a world of hurt.
You basically need to file a police report about the theft, and the bank will probably know where the money was sent/spent, and the police ideally would investigate and subpoena the records of wherever the money went and presumably discover if it goes back to you somehow. The first liability thing says you cannot have "contributed to its unauthorized use". I mean realistically someone could possibly do it and get away with it, but I mean people could realistically do many types of fraud. Most could realistically probably get away with it. It's more a guarantee to people that if they get hacked somehow other then giving naughty little Johnny/vindictive ex Jane the bank card and pin, they can get their money back.
It's entirely possible to claim your card was skimmed and have your bank refund the money. However, if they then find out that the ATM used to withdraw your entire balance is the same ATM you've used for years, and your face is on the ATMs security camera at the time of withdraw, then you're in for a world of hurt.