What is cheating ?

Cheaters will be locked out of the Playstation Network as it violates their terms of sale when you purchase a PS2/3/4. Obviously buy purchasing a console you agree to their terms of service and are thus illegally using their console for your benefit.
Gotta love contract law!

Does Sony actually do anything about it? I know for a fact microsoft doesn't on xbox. There are ~30 people on Madden who functionally advertise that they are IP booters and still have their accounts, and they will ignore massed cheating reports based on a video where a person admitted they were hacking outright. It's a rather foul joke. I hope for Ps3 community's sake that Sony actually does something about it, at all, ever.

Other than modding or expxloiiting some in game glitch that nobody knows about or gives you an unfair advantage I dont think theres anyway to cheat

Halicarnassis wrote:@Reim: yup
Cheaters will be locked out of the Playstation Network as it violates their terms of sale when you purchase a PS2/3/4. Obviously buy purchasing a console you agree to their terms of service and are thus illegally using their console for your benefit.
Gotta love contract law!

I will accept all praise and recognition for your reporting efforts

I don't think thats true or they'd be required to tell you so before you bought the console, at least last I checked, and I don't remember being told so.

What is definitely true is that playing online would be subject to those terms of service, and thus violating them is grounds for a ban, so its pretty much the same in terms of dealing with cheating/harassment.

There are definitely terms of service when signing up to an online account. I could stand corrected about purchasing the console.
In terms of being locked out - yes, if you have a look over some of the FAQs and their forum topics there are users who have been locked out before.