Dyche believes a three-man panel of ex-players and referees could decide on controversial decisions after a match with the aid of video evidence.
Dyche, speaking at the Leaders Sport Business Summit in London, said:
"I would introduce retrospective bans for cheating.
"It's got to be looked at. Some dives are being applauded now. It's ridiculous. It's very, very difficult for referees.
"A striker can drop in the box and not get banned. It can decide results. Have a panel who look at it, get all the angles.
"It would cut it out very, very quickly. It would disappear because managers would say to their best players: 'I can't afford to lose you for three matches.'
"It used to be frowned on. Now it's weirdly accepted. It's almost applauded. But cheating is cheating."
For the big stories and the banter follow us on Twitter: @tribalfootball