Say you have graduated medical school and are now in residency, when the following scenario occurs:
Your fellow resident fabricates H&P data on a patient chart because they are very busy, forgot to ask a few questions, and do not have time to go back and repeat the H&P. No harm comes to the patient.
Do you report your fellow resident, or "let karma get them" because you do not want to ruin their career?
What if it was the same situation, but the patient was harmed as a result?
What if it was the same situation, but the patient was a family member?
The bottom line is, if you have a different answer for each of the scenarios, then you have a flawed moral compass. People who are dishonest should be held accountable, regardless of whether it was a lie that caused harm, or a lie of convenience. One thing I have noticed, especially working in healthcare, a person will continue to lie until they are held accountable, or their lies are uncovered because they caused injury or harm.
Anyone choosing to go into medicine should be beyond reproach when it comes to honesty. At the core, that is one of the most valuable qualities we bring to the table with our patients.
A person being dishonest for any reason, let alone to gain benefit or appear more competitive, is absolutely unacceptable. For those of you who want to allow karma to take its course, does it make any difference that a dishonest person may commit additional acts of dishonesty that may be less innocuous in nature between now and when karma has a chance to catch them? What if the next time they are dishonest it results in harm?
The situation that the OP states is not as serious as causing a patient harm, but for those of you worried about "ruining" the life of the person in question, what if that person beat out just one other applicant because of the lies they told? Where is the compassion for that person's life? They now may have to re-apply, suffer financial loss, incur unnecessary family stress, etc.
If you are aware of someone being blatantly dishonest, and you do not hold them accountable, then you are complicit and in my opinion just as culpable for the result.
Anyone who wants to give this person a pass and not hold them accountable is a coward and taking the easy way out.