I disagree that cheating "has become" a huge problem, it was always a huge problem.
I can't remember a single multiplayer game that didn't have cheaters of some form or another. None. Zilch. Zero. It's kind of why I never grew beyond playing MMORPGs, and even that passion ultimately died out.
Back in the old days, before even xbox, online play was almost exclusively on computers on privately hosted servers, so you had mods actively banning anyone who gave any hint of cheating.