I'm not sure how many games have done this, but the concept of the "cheater's island" came up somewhat recently -- I want to say Max Payne 3 did this first, but

I'm not sure how many games have done this, but the concept of the "cheater's island" came up somewhat recently -- I want to say Max Payne 3 did this first, but I'm not sure. Basically, players who have been detected as cheaters only end up with other players who cheat. The problem is once you're on the island, you're probably not getting out. I personally favor this solution over the outright banning of players.