1. How easy it is to start fresh and shed your past reputation if you get caught doing something bad.
2. How forgiving people are and how tolerant they are to deception, abuse and immorality. I hate to say it but a lot of people are attracted to abusers. They keep going back to the same kinds of people who will abuse them over and over. These same people who tolerate abuse often seem to show disrespect and look down on good, honest people. I cannot overstate how powerful this effect is; and it seems to be getting worse over time! And these people keep coming up with narratives to gaslight themselves about their abusers "they're not so bad"... People will especially do this when their abuser has power over them (Stockholm Syndrome).
Once you factor these two things, cheating is the clear winning strategy. By a mile... It's objectively a superior strategy. If we just follow game theory; it will take us somewhere really dark. Game theory isn't what's keeping the world civilized. Society literally all rests on people's irrational emotions and moral principles.
The desire to do the right thing is completely irrational and is a net loss to the individual. If we continue with the current system and current assumptions, all moral individuals will be wiped out because they are at a HUGE disadvantage. To solve our social problems, we need to be more moral; we need to learn to judge ourselves and other people through the lens of morality and be very firm about it.