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An interesting article in the Chronicle of Higher Ed shows that online testing technology isn't keeping up with student cheating creativity. The article describes one scheme in which several students perform a sort of round-robin testing scheme in which they share questions and answers via Google Docs (now Drive). Despite question randomization and a short window of opportunity to take the test, this scheme allows all of the participants to ace the test.
Various anti-cheating systems are in the works, but it doesn't look as if most schools have implemented systems that fully prevent cheating.