@David-Obed0 @Karla811
Yes, some guests do this. In my case, it's rare since I do my best to sense the character of the guest before they book, and decline them if they appear dubious in some way.
The seriousness of it depends somewhat on your pricing profile.
If you have a flat rate for the entire villa, then the maximum allowable is the number of bed spaces you legally can supply. There's no practical loss. They just lied, that's all.
Flat rate profile is sensible in situations where your property is highly desirable, and can be guaranteed a full house at full price - say, in high season in a popular tourist area.
If you are priced on a per person basis, then more pax than what was booked for is a clear violation of terms, and subject to additional payment.
If you price on a per person basis when you can be guaranteed a full house at full price, then you will often be booked for 2 persons at a fraction of the price you could be getting - and they'll still bring more persons.
Conversely, if you price flat rate at a reduced price for say, the low season, then you can be guaranteed a full house at a discount rate. It's too cheap to resist.
Unfortunately, there's little you can do about it - you can confront the guest, but the character of guest who would attempt to defraud you out of full rate is also the same character that would accuse you of some fabricated atrocity and demand a refund, which they're more likely to be granted than not.
And if you make a claim against the guest with Airbnb, it will be your word against theirs, unless you have photo or video evidence, but then, that would violate guest "privacy", and not only can they get a full refund, but you could also be delisted.
My approach is simply to do my best to attract a good character of guest in the first place.
Otherwise, if that fails, I do not confront the guest or demand payment. I simply let them believe they got away with it, and then write it in my review of the guest.
This way, the guest will usually write a glowing review of their stay (likely due to some guilt), while in my review, I've written a warning to future hosts - as I would have been glad to have seen before I let them book my villa.
I hope that helps.