Regardless of the intent, no one should ever try the fake hours stunt. And if you do discover one, you should, as a responsible individual, report the matter to the authority, anonymous or otherwise.
As for KAL, apparently the fakers did have a good run in days when no one wanted to join airline. Although in recent times, it would be near impossible to secure any gig with them. If your previous carrier/employer had gone belly up, KAL will call the licensing authority to verify your hours and status. And if that still doesn't add up, they will give you the sack. We know of at least 2 cases in last couple of years, one was whistle blown when he was already cleared line flying, and the other during OE and was terminated immediately.
Lesson to learn, get your paperwork in order. Like I did before I was furloughed. You can't be too careful when it comes to backing up your previous experience.