Citi Platinum Amex has about the best deal (IMO) I've seen lately. For the first two years you get 3 or 5 thank you points per dollar spent. If you redeem for gift cards you can get $.01 per point, so a minimum of 3%. If you go for flights you can do much, much better. Annual fee is waived for the first year, then $125. Not sure why you would be so worried about fraud issues - you are not liable, and all banks have their issues in this department.

I've also been using a Chase professional for cash back at up to 3%. For the best coverage of all spend catagories you will probably need more than one card.