Indeed there is such a thing, it's the I-9 document check and is required for all new employees.
The problem is that identity theft is so ridiculously easily in the US that it's trivial for bad actors to just steal someone's identity. The solution is to fix identity theft.
This starts with the framing. One does not have their identity stolen. The counterparty is instead defrauded into believing something that is not true - and the problem must be made entirely theirs.
It’s mad. Criminal A defrauds company B by pretending to be some rando C. And somehow this ends up being C’s problem, and we just accept this as normal.
The problem is that identity theft is so ridiculously easily in the US that it's trivial for bad actors to just steal someone's identity. The solution is to fix identity theft.