How are students using technology?

I'm not sure about an ethical dilemma with technology but this was a struggle I had last year teaching science.
Last year, I taught Biology and Physical Science classes that were required to complete a high school science fair project.  When I found out about that, to be honest, I was a bit scared of it.  The schools I went to never participated in science fair so this would be my first journey into the world of science fair.  At a previous school, I had many parents doing projects for their child.  So I was very careful about what I was getting into. 
When it came to for students to get their topic, I thought it would be good to give the students some time in the computer lab allowing them to use the internet to find some topics.  It started good and the students found some topics but there is a problem with that.  The topics the students found were word for word from the internet sites.  I later found that some of the students used the information from these sites as their own work for their project.  I know using the internet can be very helpful for the students but I learned I have to be very careful in what the students are turning in. 
Later, I found myself giving time to students to type up their literature review and discussion in the computer lab.  Again to my dismiss, I found students cut and pasting internet sites onto their document and saying it was their own work.  I learned that you can't give your students an inch with an assignment like this.  Maybe one of the worst parts was working with the students on their reference pages.  They were allowed two internet sites and had to have 8 primary resources.  They had written research papers in 7th and 8th so I thought they would know the difference but I was wrong again.  Primary resources to my students meant internet articles.  I knew they were struggling so I found some online peer reviewed article from some professional journals that I know.  I showed them what a primary resource looks like and what to look for.  I was very troubled to see that about 80% of my students still included at least 6-8 internet resources in their reference section of their paper.  It was again astonishing when they tried to convince me that they were primary resources.  I learned a valuable lesson that I can't assume anything with my students, especially with technology.   If I give my students an inch with technology, they will take a mile.  I was learning just as much if not more than some of my students with this science fair project last year. 
This is the age of technology and teachers are doing everything they can do to introduce more and more technology in their classes including myself.  We want to give the students more and more time in the computer lab and online activities.  Expose them to more and more technology and they will be ready to succeed after high school.  Our students are smarter than we give them credit for.  Most already know more about technology than we as teachers know.  Students know at times how to get around different assignments so they can do as little work as possible.  While trying to incorporate as much technology is good for the student and teacher, teachers have to be very careful about how the students are using technology and what they are turning in for their assignments.