Let's say you want to play against them, you play, you win, and you write a report.

Do you take into account reports where the loser is listed as a non-existent player? No. That's how cheaters should be treated; they should no longer exist on the forum. If a person can't play fairly with others, then they should just play single-player. And such people should be banned from the forums once and for all. Getting caught cheating isn't such a frequent occurrence that we shouldn't punish the person to the fullest extent. Give them the full 400 points penalty and ban them by IP address. Are there really so few players?