Rob Hyndman is pointing to Schneier on Security: Korea Solves the Identity Theft Problem. Apparently, Korea is about to pass a law placing full responsibility for losses on the banks for identity theft and online financial fraud, even if the bank is only partially responsible. This will provide the incentive to put in place fraud-blocking measures.
The next questions are: (i) will it work? and (ii) will it only be a Korean phenomenon?