I know this is long, but my school has effectively eliminated cheating, here's how...
At my school, MCO, they have instituted USMLE testing procedures for all tests that we take.
We shuttle in to the class with nothing but our clothes on. We are randomly seated by a large number of proctors. The tests are handed out individually, with the proctors checking our testing area. During the test, if you so much look suspicious, you will be rewarded with a proctor looking over your shoulder the rest of the test. Hats are not allowed. Jackets, and sweaters may be worn, but you must ask for assistance for them to be removed; they literally help you with them on and off. You are escorted individually to the bathroom, and during that time you must turn in your test to the proctors. While in the bathroom (for guys) the proctor stands right behind you, or next to you if he seems to be having an especially micturating kind of day with his benign prostatic hypertrophy. Also, you are provided with your blank paper, calculator and pencils. If you question the logic or answers on a particular question you right out your comments and explanations on the back of the test booklet, which is then individually reviewed by the course directors; you are not allowed to raise your hand during the test for any test related questions. Thus if you had a legitimate concern, you will be duly reimbursed any missed points that the faculty deem worthy of rewarding.
At first, coming from undergrad, this testing style was quite foreign and intimidating, but from it has come many bonuses. You may want to recommend this to your course directors at your schools.
1) People dare not make a nuisance (unneedingly that is), lest they fail the test automatically. This eliminates the cell phone problem; automatic failure with cell phone on your person. This means the class room is free of annoyances.
2) I will be used to the testing procedures of the USMLE when the time comes. Meaning that the added stigma and style of the test will not be foreign.
3) I would be hard pressed to find a cheater in my class. i.e. My faculty has taken some pretty bitchen steps to make sure that I am fairly ranked with the rest of my class mates. This reduces the stress of competition factor.
A) A note on the proctors. The school has taken the liberty to 'scrounge' up the elderly people in our town and offer them free transport, food, and discounted meds at our school. Most of these people are itching to get out of their old musty homes/retirement facilties. Additionally, most of the proctors have some pretty bitchen WWII stories after the test is over; Like Storming Normandy, etc.
B) Also, all old tests are made available to us through the office of student life, so there is no select few/group of people with access to unique knowledge.