Your point is well taken about the banks. I think the general principle still applies though. We have a system where all of these entities possess all kinds of

Your point is well taken about the banks. I think the general principle still applies though. We have a system where all of these entities possess all kinds of information, and the main question is, "Who should pay when they get that information wrong through no fault of the person whose information they're keeping?" At the end of the day, his problem is exactly that he had to pay a massive cost (in the form of reputational damage and tremendous wastes of his time) because a fraudster did a bunch of stuff using his name. While not technically monetary, it's definitely not impossible to financially quantify people's time and reputation.