Does it catch fraud or manipulations of data? No, patently not: peer reviewers are not omniscient, so they cannot divine made-up data, nor can they check all the outputs of a lab to see when they’ve simply copy-and-pasted data between papers. If they were, we wouldn’t have the website PubPeer stuffed to the gills with people flagging potentially serious misdemeanors in published papers, nor Retraction Watch’s endless reporting of papers so dodgy they’re expunged from the literature.
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