Concerning the viability of firing under-performing individuals, how likely is that? Are there any implications with indirect costs such as unemployment benefits? (I ask because I do not know - any insight on this would be greatly appreciated.)

Are there cost implications? I should think so since the fakers cost lots of money and are not producing any software.

Unfortunately, this happens far too often. However, I have completely bombed on "difficult interview questions" and "code to be written" - merely due to the pressures felt in the interview(s).

As said elsewhere, identifying the "fakers" is extremely difficult - perhaps that's why people who were referred tend[0] to be more successful? (But how do people outside get in?)

[0] Merely a guesstimate based on casual observations.