The corollary of your argument is that hiring rampant cheaters produces (by definition, as you say) a low-trust company. Putting aside everything else, low-trust organizations are intrinsically dysfunctional (though it may take a while for the consequences to play out.) In them, asking more questions will not get you useful information, and you had better watch your back.

See, for example, the Third Reich, the Soviet Union, Hoxha's Albania, the Taliban's Afghanistan...