You are misinformed. It works exactly the same as with a credit card. You report the fraud. The company informs any vendor that accepted the stolen card of a charge back. The money goes out of their vendor account through the bank and back into your account where it started.
Retailors are the ones that lose when they allow fraudulent charges. It's amazing they aren't more careful about verifying the identity of card users. That's why all my cards say "CHECK ID" in big red letters where the signature is supposed to go.
“Basically there is no risk to using a credit card,” says Schultheis. Federal consumer protection law limits the liability to $50. “Few issuers even impose the $50,” he adds.
Under the same scenario, many debit card issuers also assume the liability, but with qualifications. “Card companies advertise zero liability. But read the fine print,” advises Fox. Generally, the issuer requires notification within 48 hours of the occurrence. That window can close before a cardholder ever realizes there is a problem.
http://www.msnbc.msn.com/id/11726422/