Because the punishment in this way will make people cheat abashed and defamatory, or could be exposed by a group of friends that he knows what he is doing, it is not correct.
The punishment in this way to make people feel cheated, shame and disrepute. Or may be banned from the group. It will make him realize that what he did was wrong.
Because punishment in this way a feel ashamed and disgraced reputation. Or it may be banned from a group of friends. So he knew what he was doing was wrong.