That may be university-by-university thing. I briefly managed an academic department at an old, highly-ranked university. Professors regularly caught cheaters and there was never any question that they would fail the course. The only question was whether the incident was mild enough that they would be permitted to try again next semester or severe enough to leave the university.
The administration supported us 100% as this was seen as essential to defending the value of the degree conferred on the other students. Without some kind of standards we'd eventually become just another degree mill.
What surprised me most was how many students who never finished the degree (not just cheating -- some just got job offers and decided not to stick around) still listed the degree on their resume/CV. The problem is that many companies now call the school to check as part of their hiring process, and the school would inform them that they had enrolled but had not been granted the degree. In retrospect I wish I had instituted a policy of letting the ex-student know in those cases, because I'm not sure if hiring companies tell them and I wonder how many people think they're just unlucky or something.