Do your diligence, and your technical/communication/leadership interviews to make sure you're hiring the right person.
And if it doesn't work out after 2-3 months, fire the person. It happens in all formats of work whether it's remote, hybrid, or onsite.
You're not wrong, but it's missing the point.
It's so much harder and riskier to do this onsite that it's not very common.
With remote, a group of people can defraud multiple companies at the same time this way. They can do it all remotely, which means they can do it without stepping into the legal jurisdiction of the company.
Remote opens the doors to so much more fraud. There is almost no comparison between someone doing this on-site and someone from a foreign country scamming companies as their job.
Typically the person "hired" is the senior and the person doing the work is _extremely_ green.