That happens everywhere though. It's not endemic to "frat bros"—a lot of people find jobs through connections rather than only grades. Most of the time it's through a family friend or family member, or in CS through open source or meet ups. It sucks when you don't have any connections but it's not unfair; it's just how it is. Should I not tell an undergrad friend that my company is hiring interns and recommend her?
Of course an international student will have less connections which is why they sometimes struggle getting internships.
But yeah, the cheating stuff is messed up!