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Strong demand for ghost-written academic papers in the lead-up to university graduation and revelations that people pay to have scholarly articles published are worrying critics who fear the billion-yen industry is making it harder than ever to evaluate graduates' abilities.

A new Ministry of Education regulation to punish academic fraud has come into effect to clamp down on plagiarism and fabricating research data, as well as buying, selling or organizing trade in academic degree theses, including all forms of "ghostwriting" or buying of materials produced by essay mills.

Universities may attract penalty, including a freeze of grants, if its teachers are found to be guiding more than eight PhD students at any given point in time as part of a drive to plug lacunae in research. The University Grants Commission will ask all universities to have anti-plagiarism software to ensure that the thesis papers reflect genuine research. The step assumes significance against the backdrop of some agencies offering their services to research scholars to draft theses for them for a fee.

The independent quality body for higher education in the United Kingdom, the Quality Assurance Agency for Higher Education or QAA, has issued new guidance on how to combat 'contract cheating', where students pay a company or individual to produce work that they then pass off as their own. The companies involved – typically using a website to promote themselves and receive orders – are often dubbed ‘essay mills’, but services provided may include not just essays or other assignments, but conducting research and impersonation in exams. While there is a common perception that students studying in another language are more likely to cheat than domestic students, there is currently “no UK data to support this view”.

Universities are being urged to block websites that sell essays, identify cheating "hot spots" and consider publishing data on breaches of academic integrity. As universities grapple with a rise in contract cheating – which involves students outsourcing assessments – Australia's higher education watchdog has unveiled new guidelines to tackle the issue. A recent survey by a University of South Australia associate professor who helped create the guidelines, found that 6 per cent of Australian students engaged in cheating.