You say "identity theft", I say "a strangely socially acceptable discourse by which financial institutions shift fraud risk to consumers."
Eve convinced Banker Bob she was Alice. Alice didn't lose anything. Banker Bob says Alice suffered identity theft i.e. this is her problem.
Alice complains to Banker Bob that Banker Bob has caused Credit Reporting Charlie to blacklist her. Bob offers a year of credit monitoring.
I like Banker Bob and thinks he provides a valuable service, but he's big, sophisticated, and knows he's in a convenience/security tradeoff.
Seems to me sane resolution is we make it straightforward for Alice to bill Bob for negative externalities of Bob's business decision here.
n.b. Discourse of identity theft often functions to assume conclusion that Alice was asking for it by being negligent regarding security.
Alice has often done negligent things like shopping at a grocery store, handing her card to a waiter, writing a check, or having a job.
(There are plenty of other vectors for it, too, some where Alice bears meaningful responsibility, and some which are just maddening.)
(A particularly unfun one: Alice's estranged Mother Mildred opened an account with Bob using Alice's details because Mildred is a criminal.)
(If Mildred had stolen money from Bob using a gun Bob would deal with it, but she stole it using a pen, and so it is Alice's problem.)
@patio11 worse is when Bob's co-worker Betty ends up being the one who stole it.
