The incentive to cheat is the money paid to participate in the undergraduate program plus the career expected to follow from it. Remove those and you will have

The incentive to cheat is the money paid to participate in the undergraduate program plus the career expected to follow from it. Remove those and you will have no students. But what you describe wouldn't remove the incentive to cheat, just make cheating a different and presumably more difficult process. But as long as it's easier to cheat than not to cheat, rational students will continue to cheat.