Yes, really. One of my colleagues previously worked for a credit agency, and she stated that in many cases there were gaping holes in the data collected, or it is completely incorrect as individuals provide fake employer, address, phone numbers etc.

The previous versions of forms required your full name, DOB, drivers license or passport, current address and current employer, however they now ask for far more information that exceeds what is reasonably required for identification purposes. Other organisations including Government agencies, do not require this level of detail to verify your identity. What they are doing is updating their existing information and/or collecting additional information - not verifying your identity. They should be honest about the purpose of collection.