It costs employers money to on board someone, not just in pay, but in other employees training that person. Obviously the case must be clear cut, but I've personally hired someone who clearly cheated during the remote phone interview, and literally couldn't even code a function in any language in person.
There are people with absolutely no background as a coder, applying to jobs with 5 years experience, then fraudulently misrepresenting the work of others at their own, to get the job.
That's fraud.
As I said, it's not being prosecuted as such now. But if this keeps up?
You can bet it will be.
Because it is fraud.
I won't name names, but there are a lot of Consulting companies that feed off Government contracts that are literally this.
"Experience" means a little or a lot, depending on your background. I've met plenty of people with "years of experience" that are objectively terrible programmers.
If the AI premise is true, then it's this or good programmers, and good companies will never meet.
People don't really call the police, nor sue over this. But they can, and have in the past.
If it gets bad, look for people starting to seek legal recourse.
People aren't developers with 5 years experience, if all they can do is copy and paste. Anyone fraudulently claiming so is a scam artist, a liar, and deserves jail time.
So you create an interview process that can only be passed by a skilled dev, including them signing a doc saying the code is entirely their work, only referencing a language manual/manpages.
And if they show up to work incapable of doing the same, it's time to call the cops.
That's probably the only way to deal with scam artists and scum, going forward.