Yes, they get away with it.
And yes, the bank would have made the person who deposited the bad check pay the money back. From the banks perspective, they are out that money as well, and they can't get at the person who actually stole the money, so they go after the person who deposited the money instead. And the bank will win, there's no way out of that one. You'll never be able to get a bank account again anywhere until that money is paid back.