I never saw any researchers or students falsify or make up data, but often I saw experiments performed without defining a hypothesis first. The hypothesis was created a posteriori to match any interesting correlations that could be combed from the data. I felt like I was a marketer trying to find a reason to promote a product. This particular approach might be standard when dealing with in-vivo experiments (on human subjects). It's a time-intensive process and you can't just rerun the experiment like you can on an artificial system. However, I didn't feel like it was the correct way to do research.
There's been renewed interest in recent years of creating a journal of failed experiments for various research areas, but it never seems to catch on. It would be invaluable, but there are too many egotistical people in academia who don't want to be associated with failure in any way.