They're assuming, not verifying and the information they use is specious at best. It's sourced from 3rd parties and not verified by the individual. A perfect example of lack of verification and the weakness of their data is your history of addresses. Divorcees often find their ex's new residence will show up on their credit profile as their residence for years after being divorced.

An identity verification system would require the individual establishing their identity with the credit agency and provide as much or as little credit establishing information.

When a B2C transaction is established, the customer would provide the business with a token identifying the credit profile they want to use and the business would request a credit chect with it to the agency, and if the business accepts the credit score they can both acknowledge to the credit agency they wish to do business.