I guess you worked somewhere where that was considered a good business strategy then. I worked at a large publisher for over 10 years on couple big competitive titles and the idea always was to get cheaters off our service asap and permanently, no matter their spend(in fact we couldn't see that and it never made any impact on our engineering decisions around the problem).
>>It's a terrible place.
Some companies sure.
And yes sorry I realize I said "no one does this" - let me correct myself to say that in my experience at a couple big publishers this isn't a strategy anyone pursues because it's not worth the losses to your legit playerbase and reputation. But there might be companies that do this, I concede.