OMG what a story!!! With some experience (business situation) of being the victim of a thief, I would probably NOT cut anyone a break for this. Did she not have enough money? Or why would she have been “borrowing” your card like that? Did anything else go missing like jewelry or other valuables?
To make matters worse she is my cousin. My mother and her mother were sisters and after my mom died, I continued the tradition of going over in the morning and having a cup of coffee with her every day. She passed away several years ago, but for the memory of her and the fact that she would have lost her job, I couldn't find it in my heart to go any further that restitution and psychiatric care.
I had a coin jug that also always seemed to be losing money, and some Morgan Silver Dollars from the late 1800's and early 1900's that my mom saved while she was alive.