Earlier quoted context omitted.
In Australia Universities that have remote study have places where people can do proctored exams in large cities. The course is done remotely but the exam, which is often 50%+ of the final grade, is done in a place that has proctored exams as a service. Can't this be done in the US as well ?
Variations in this system are in active use in the US as well. Do you feel it is effective? It seems to me that there is a massive asymmetry in the war here: proctoring services have tiny incentives to catch cheaters. Cheaters have massive incentives to cheat. I expect the system will only catch a small fraction of the cheating that occurs.
The main kind of cheating we need them to prevent is effective cheating - the kind that can meaningfully improve the cheater's score.
Requiring cheaters to put their belongings in a locker, using proctor-provided resources, and being monitored in a proctor-provided room puts substantial limits on effective cheating. That's pretty much the minimum that any proctor does.
It may not stop 100% of effective cheating 100% of the time, but it would make a tremendous impact in eliminating LLM-based cheating.
If you're worried about corrupt proctors, that's another matter. National brands that are both self- and externally-policed and depend on a good reputation to drive business from universities would help.
With this system, I expect that it would not take much to avoid almost all the important cheating that now occurs.