The U.S. General Accountability Office has issued a report claiming that over 5% of domains in Whois contain contact information that is “obviously and intentionally false”. This doesn’t surprise me. How many times do you find phone numbers like 555-123-4567 in Whois?
Congress decided to investigate because of the rise in phishing scams. I think ICANN or the registrars should create a system to delete domains with obviously false information. They should try to contact the domain owner via e-mail, snail mail, and phone. If no response, delete the domain and let it go to someone who plays by the rules. Read details at CNET.