"Just make the punishments harsher to make up for reduced probability of catching wrongdoing." is and always has been an absolutely terrible strategy and the epitome of stupid-evil. The Qin Dynasty tried that and wound up lasting for only fifteen years. They had rebellions twice caused because the alternative was death anyway, including one which had them supplanted.
But the benefits will likely also have to be increased, to still make it an attractive place to work for those with the desired personality traits.