If it gets reported back to AMCAS or something, I'd the situation could get messy. Also the fact is you never know 100% the student lied (maybe the person who left interviewed the applicant some time before she left), so you can get into a messy situation. Simply rejecting the applicant, without inform other schools, makes the most sense.So by Game Over, we mean to say that the applicant receives one less interview invite? Or would this be communicated to other schools?
Most people will project those messages, but I'm sure you've come across quite a few people who were excellent liars.You can falsify a lot of things but they'll know when you sound fake during the interview. You will project unequivocal nonverbal messages that will let the interviewer know that you are lying.