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It's so strange that this is even a thing
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You should not ever let someone take your bank card out of your sight! Where are you where this is accepted!?
That’s the norm in all of the US
Mental, is there a lot of fraud and identity theft?
Not a lot of fraud or identity theft from the waiter taking your card to charge your meal, no.
Probably there are some rogue waiters who try to use a customer’s card to buy personal things for themselves, but I’ve never heard of it happening to anyone I know personally
I've seen Americans discussing paper shredders as standard appliances everyone has because they are afraid of identity theft.
Yeah, it's not great if you think about it, but it's standard. I'm not here to be a prescriptivist; I'm just describing my experience (and it's a common one in the US of A).