What do you think of a Government that does it's job this way?

The problem is many of the fakes are very good and how do you authenticate them? Some illegals have been hired by the government and gotten security clearances so you might not know it is fake for years. You want to do what to some one for not knowing a doent is faked? It isn't a loophole it is a common sense approach-it is difficult to catch good counterfeit money and doents are easier since each state and within each state some things are done differently. If they know it is fake they are liable for prosecution but proving some one knew something is fairly hard to do. The forged doents are not an allowable form of identification if they are known to be faked, many businesses do some checks, but it is like a 17 year old with a fake drivers license buying booze-the fact he gets way with it does not make it a legal or allowed form of identification-just a good fake.