Fraudulently cashed check which was issue from a card company.?

I redeemed my credit card points for cash of $250(had to spend $25,000 to receive this amount). The card company sends check in amount of $250 to my address. The check delivery attempt gets intercepted by unknown person/people who cashes the check at another financial institution without my authorization. After numerous inquiries I made to my card company and two months after my initial inquiry, my card company instructs me to go to the institution where check was cashed and file affidavit for fraud and to receive $250 from the institution, and my card company cannot ist me any further. My intuition tells me this is not the right step. I feel it is my credit card company's responsibility to pursue/initiate investigation into disperse of check cashed by the institution and response whether my card company can reissue the redemption points or cash to me. I am puzzled because the check was never drawn from my personal account but credit card's corporate account. Should I pursue small claims court against the card company for $250? Or is card company right? Should not the sender responsible for safe delivery of an item to destination/receiver?