Good points. They do have licenses and credentials, and they can be disciplined if they are negligent. Not for making mistakes generally speaking, but for professional negligence. They also have to carry professional insurance against malpractice. On the other hand the consequences of hiring a nurse who isn't qualified are very much worse than the typical consequences of hiring an unqualified developer.

Can you expand on the guy who faked his technical capabilities?

Way back, I was part of a 4-person team that did some phone interviews of contractors. We asked some pretty basic questions, based on their resumes, and after the call voted on him/her. One of my questions to see if they knew anything about C++ was just to ask if they could tell me what a class was. A bunch of candidates couldn't answer that question.

It really isn't that hard to ask some basic questions and talk about work experience, to get a handle on whether someone is actually a competent programmer or not. If you're looking for top-tier talent, this might not be sufficient, but most jobs do not need top-tier talent anyway.

We're not talking about fraud. You fire those people and move on. You shouldn't hamstring your recruiting process for the rest of time because of it.

BTW, why didn't you check references?