The Impostor Rule and Identity Theft in America

TLDR: In this paper, the authors combine the fields of legal history and criminal justice with the approaches of emerging research in both identification and paperwork studies to explain the ongoing policy problems of identity theft.

Abstract: Impersonation and then identity theft in America emerged in the legal space between a civil system with a high tolerance for market risk and losses incurred by impostors, and a later-developing criminal system preoccupied with fraud or forgery against the government. Negotiable instruments, generally paper checks, borrowed from seventeenth-century England, enabled a geographically far-flung commercial system of paper-based but impersonal exchanges at a time before widespread availability of centrally-issued currency or regulated banks. By assigning loss rather than catching criminals, the “impostor rule” made and continues to make transactions with negotiable instruments valid even if fraudulent. This large body of commercial law has stood essentially unchanged for three hundred years and has facilitated a system rife with impersonation which criminal and federal laws did not address until the late 20th century. English common law, American legal treatises, court cases, law review articles, and internal debates behind the Uniform Commercial Code tell the story of a legal system at the service of commerce through the unimpeded transfer of paper payments. Combining the fields of legal history and criminal justice with the approaches of emerging research in both identification and paperwork studies, this article explains the ongoing policy problems of identity theft.