Degrees are only HR filters. Businesses often care more about profit than principles, so many of them don't care about lies that don't lower profits.
IMO it isn't more unethical than what big businesses typically do, like take advantage of unfair tax loopholes. Someone else pointed out that requiring a degree is illegal; if so, I'd say it's ethical for people to lie about their credentials when businesses engage in unlawful behavior by screening for them.