Also, Americans tend to put individual before group. I wonder if your example isn't so much cheating as a difference in culture.
Cheaters, whether American or Indian or Chinese, ruin the educational experience of college. Universities really should take it much more serious than they currently do.
They don't blow any curves necessarily but they do appear to be smarter or more able, and that impacts everything from teaching assignments to thesis committee solicitation.
I wouldn't be surprised if college instructors start doing this as well-make exams tougher to compensate for cheating, rather than dealing with cheating head-on.