..this just reinforces the problem stemming from diploma mills... personally I think that every business / organization who is seeking applicants owes it to themselves to make the telephone calls to verify information from job seekers. Until HR departments see this as a legitimate problem, people will attempt to get away with fraudulent degrees.
I would prefer to see a central registry where employees and employers can update their employment and educational history and do away with references all together. The employer and school could add an entry for each employee or student and the employee could verify the information prior to it being viewable by other employers. Considering most employers these days limit information about previous employees to dates of employment, job position, and perhaps salary in terms of employment references such a registry would benefit both employers and employees. All personally identifiable information about the employee though must not be published to prevent identity theft. This in concert with a database of accredited post secondary institutions would reduce fraud.