http://news.bbc.co.uk/1/hi/uk_politics/7104115.stm
This isn't the only incident of it's kind either in the recent past.
And these are the same muppets who are trying to push an all encompassing ID card on the UK population. In the time between it being hacked, and the govt finally giving up on the "it's infallible" line, anyone caught out by ID theft is going to be in for a very hard time of proving it wasn't them.