Yes, of course it's of great concern. It's something that needs to be addressed and dealt with. Unfortunately, it does not fall under my jurisdiction.
You used the term “identity fraud”. If it truly is fraud, then it becomes a criminal offence. If it's just misrepresentation of something, it may not amount to criminal, but it still should not be allowed. To my knowledge, no specific program addresses it as such. It is part of the general ethics of procurement and trying to make sure that people play by the rules. I'm not a procurement expert. I don't know to what extent the verification process needs to be tightened or needs to be improved or not.