I do read the news and I see plenty of stories of muggings that happen at atm's.
I have also never heard of anyone being able to walk into their bank and report that hours after removing cash from their account, they were robbed at gun point of all the money, and then the bank says, no problem, we'll just give you more cash. How much were you robbed of?
If I lose my wallet or card, I can have my credit/debit card "turned off" and inactivated.
If I have cash in my wallet.......gone. Forever.