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Online/distance education enables all types of fraud. Basic proctoring of exams goes a long way to deter and catch it.

If you, as a distance educatee, want to commit "fraud" – it only affects you

If you, as a distance educator, want to reduce "fraud" – a) you can't (not really), b) structure your exams so that whether they're open-book or closed-book, they're equally "hard" or "useful" in measuring the educatees' education