You're baselessly asserting your position, though.

If you write your pin on your ATM card, they will not refund you. That is policy and they ask everytime you lose your card. The bank views this as lack of due care. Likewise, if you leave copies of your fingerprints on your payment device, they could argue that you are likewise acting with un-reasonable care.

Now that this has been (so easily?) spoofed, is it reasonable to believe it is secure? That is a valid concern. Unlike a pin, you cannot reset a fingerprint security mechanism. So when it is compromised, it is over. So, the result is messy in that it puts you in a problem using today's standard practices, but at the same time, the standard practice "defense" is not applicable, and lacks an obvious alternative.

This is not a strawman, its a legitimate edge case.

3. I will hold in strict confidence my personal identification number (PIN). I will take reasonable precautions to keep my PIN separate from my ATM card and to prevent the unauthorized disclosure of my PIN.

So, you sign an affadavit verifying you did not contravence this agreement. They will screen for this as/if you file a claim for fraud.

I live in Europe, and twice in the last two years or so my card details have been compromised, and both times my bank has rang me to notify me of suspicious transactions before I'd even noticed. It depends on the bank (and the country most likely) with regards to getting a refund. I got refunds no problem, but I've heard people having problems in the UK. The fraud happened online (not sure how, I'm reasonably tech savvy and careful with my card details).

I believe that this has now changed (although I've not had a new card recently and I don't remember seeing any new TOS).