Why would someone want to lie about receiving a military medal?
What ever happened to shunning people? That seemed like a neat idea to punish jerks and idiots.
While I don't believe this sort of this should be punishable at all, my creativity cap is on and it would be interesting to make the people who lied about earning the medal actually go through what it took to earn the medal...but once again, in reality, what is the harm of some jackass telling you he earned a medal he didn't actually earn? Would you really hire someone for a job, based solely on the fact that they earned a specific medal?
If you're hiring someone based on their military service and the details of that service are important to you, all you must do is ask to see their DD214. Simple as that.