That seems to be overstating their "failure" here. It seems that the person they actually interviewed may have been qualified, personable, and so forth. The problem is that a TOTALLY DIFFERENT PERSON showed up to work. How is that a failure in "vetting?"
I haven't been through a cold hire in a while (where I wasn't already known to the company), but I suppose the only solution is to demand photo ID and check online records as well. But I doubt many companies actually do this.