8 Hidden Costs of Cheap Remote Proctoring Solutions

Sep 03, ’25 | Written by Kranthi

When it comes to remote proctoring solutions for online exams, institutions often gravitate toward lower-priced options to stay within budget constraints. However, these seemingly cost-effective solutions frequently come with hidden costs that can significantly impact both your institution and your test-takers. Before committing to a budget-friendly remote proctoring service, it's crucial to understand what you might be sacrificing in exchange for those initial savings.

The remote proctoring market has expanded dramatically in recent years, with numerous vendors offering stripped-down services at attractive price points. While the upfront costs may appear reasonable, the long-term financial and reputational implications can be substantial.

1. Increased Faculty Workload

One of the most significant hidden costs of budget proctoring solutions is the burden placed on institutional staff. When proctoring systems rely solely on automated flagging without human review, instructors and administrators must manually review flagged sessions.

Consider this: Professional proctors spend an average of 47 minutes reviewing a single exam session. For a course with 100 students, that's nearly 80 hours of review time almost two full work weeks that your faculty could spend on more valuable educational activities.

2. Compromised Exam Integrity

Low-cost remote proctoring solutions typically rely on basic webcam monitoring or simplistic AI detection algorithms that miss sophisticated cheating methods. A recent study from a Netherlands university revealed that automated proctoring systems failed to detect a single instance of intentional cheating during controlled tests, while falsely flagging honest students.

When cheating goes undetected, the value of your credentials and the reputation of your program suffer. This creates a cascading effect that can impact enrollment, accreditation, and ultimately your institution's bottom line.

3. Student Accessibility Issues

Budget proctoring solutions often lack the flexibility to accommodate students with disabilities or those requiring specific accommodations. This rigidity can lead to:

  • Potential legal issues related to ADA compliance
  • Additional administrative time spent finding alternative testing solutions
  • Increased stress for students requiring accommodations

Without proper accommodations, students may perform poorly on exams not because they lack knowledge, but because the proctoring interface creates unnecessary barriers.

4. Technical Support Limitations

When technical issues arise during remotely proctored exams, they inevitably will budget solutions typically offer limited support options. This results in:

  • Increased test anxiety when students can't resolve technical problems
  • Additional staff time spent troubleshooting issues that should be handled by the vendor
  • Potential test retakes, creating scheduling headaches and additional costs

Quality proctoring solutions provide robust technical support channels to resolve issues quickly, minimizing disruption to the testing process.

5. Security Vulnerabilities

Budget proctoring solutions may cut corners on data security and privacy protection. This creates risks including:

  • Potential data breaches exposing sensitive student information
  • Non-compliance with privacy regulations like GDPR or FERPA
  • Legal liability if student data is compromised

The cost of a single data breach far outweighs any initial savings from choosing a less secure solution.

6. False Positives and Academic Integrity Cases

Automated systems without human verification tend to generate excessive false positives flagging innocent behaviors as potential misconduct. Research from the Higher Education Policy Institute reveals that academic staff spend nearly 93.3 hours investigating suspected misconduct per 100 exams.

Each false positive requires:

  • Time spent investigating the allegation
  • Communication with the student
  • Documentation and record-keeping
  • Potential appeals procedures

These hidden administrative costs quickly accumulate, erasing any perceived savings from cheaper proctoring solutions.

7. Reputation Damage

When exam security is compromised or students have negative experiences with your proctoring system, your institution's reputation suffers. The cost of rebuilding a damaged reputation far exceeds the savings from budget proctoring solutions.

High-profile cheating scandals at institutions like the Naval Academy, Cal State LA, and Harvard demonstrate the significant reputational damage that can occur when exam integrity is compromised.

8. Limited Flexibility for Different Exam Types

Budget proctoring solutions typically offer one-size-fits-all monitoring, failing to recognize that different exams have different security requirements. This lack of flexibility forces institutions to either:

  • Over-secure low-stakes exams, creating unnecessary student anxiety
  • Under-secure high-stakes exams, risking academic integrity
  • Find multiple vendors for different exam types, increasing administrative complexity

A comprehensive solution that offers multiple proctoring options within one platform allows you to apply the appropriate level of security for each exam while maintaining a consistent user experience.

Truly effective remote proctoring solutions like Proctor360 offer a flexible, end-to-end approach that addresses these hidden costs. Our platform provides multiple proctoring options from AI auto-proctoring to the groundbreaking 360 Total View™ technology allowing you to select the appropriate security level for each exam.

Unlike budget solutions that force you to make compromises, Proctor360's comprehensive platform delivers:

  • Reduced administrative burden through professional proctoring services
  • Enhanced exam security with multiple monitoring options including 360-degree environmental views
  • Flexible accommodations for all students
  • Comprehensive technical support
  • Enterprise-grade security and privacy protections
  • Human verification to minimize false positives
  • Protection for your institution's reputation
  • Configurable security options for different exam types

When evaluating remote proctoring solutions, it's essential to look beyond the initial price tag and consider the total cost of ownership. Budget solutions may appear attractive at first glance, but the hidden costs of increased workload, compromised security, student complaints, and reputation damage can quickly exceed the upfront savings.

By investing in a comprehensive, flexible remote proctoring solution like Proctor360, institutions can ensure exam integrity, reduce administrative burden, and provide a better experience for students and faculty alike. In the end, the true value of remote proctoring isn't measured by its price, but by its ability to maintain academic integrity while supporting educational goals.

Don't let cheap remote proctoring solutions cost you more in the long run. Choose a partner that delivers true value through flexibility, security, and reliability.


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