Comment by twoodfin
My pet solution has been to make the credit reporters liable for transmitting false information to the CRAs.
Chase tells Experian I opened a new line of credit with them, but it later is demonstrated that it was a scammer with my SSN? Congratulations, $5,000 fine.
Of course this all gets priced in to the cost and availability of consumer credit. Good! Now the lenders have an incentive to drive those costs down (cheaper, better identity verification) to compete.
Can you describe how you make them liable in this arrangement?