Microsoft has issued the most harsh penalty for gamerscore cheaters, who use “external tools” to artificially inflate their score (such as save game ROMs): They’ll have their gamerscore smacked down to zero, and label them a cheat.
The Xbox Live Sheriff has begun targeting players who “gain achievements through avoiding game play and the use of external tools” and, as a punishment, resetting their gamerscores to zero, making them “unable to regain all previously earned achievements,” and lastly (though, most deliciously), permanently labeling them “as a ‘cheater’ for the community to view.”
Woo! Let the punishment fit the crime, eh?
(Thanks, Joystiq.)