The need for E-Verify to determine legal eligibility to work in the United States has been rising, and will continue to grow as the Obama administration proposes reforms to cope with an estimated 11 million illegal immigrants currently in the U.S., the panel said.

However, the system is flawed. It sometimes falsely deems a legitimate employee ineligible to work, and identity thieves using stolen Social Security numbers and other documents can fool the system into clearing them.