Being able to take someone's money by taking plaintext credentials like social security numbers and the numbers written on the front of a card is exactly the fault of the banks.
Exactly - as long as we continue to call it "Identity Theft" and not "Credit/Financial Fraud", it will have the perception of being the victim's problem and fault. If you get your car window smashed and things stolen out of your car, it's often perceived as partially your fault for where you parked, what you had exposed, etc. In the case of so-called "identity theft", the actual crime can be taking place miles away, and you may have no realistic way of preventing it. The bank has a problem - not me.