Mentality of students is a different problem.
It a young age when, in Holland at least, you are forced to go to school, the teacher is the customer and the student the producerer. The intent to cheat is there, because the student may not want to be there and cheat his way out.
When at a later age you will see the mentality change, the students become the customer and the teacher the producer. Now the student actually wants to learn, if he wants to cheat, then it mostly hurts himself.
When you leave school with your degree and you know nothing, the businesses will start to value the degree less. So the students and the school has the incentive to make sure when they hand out their degree's, the student actually know what he is talking about.
So, design tests that have a smalelr chance of being cheat at and help your fellow students become the best students they possibly can.
I like how the Dutch DMV solved it. Multiple choice, all at the same time, limited time per question. No chance in hell you can cheat on those.