How does the testing method and possibility of cheating in an entirely online degree affect the value of the degree? Although my question can't be answered absolutely, I'll try to state it in a way that's as close as possible.

I'm considering earning an entirely online Software Engineering bachelors degree from a school which also has an on-campus equivalent. But, most importantly: my exams will be all closed book. 

It's very easy to cheat with closed book tests, I expect; even if they try to prevent it, just use a second PC or a virtual machine. 

Because of how easy it is to cheat with this method of testing, is it a strong indicator that potential employers will place little value on my degree?
Being online and thus open to cheating on tests certainly reduces the value of the degree, as you suggest in your question.