I think it would be a nice idea for in-game moderators to kind-of have a god-like appearance (or like servant of god). Players who are caught scamming or cheating or hacking can have the god\'s wrath on them, which is shown by some kind of animation. These don\'t do much for gameplay mechanics, but it adds to its environment, which makes it a \"cool\" factor.
Here are a few examples:
Lightning strike from the sky = means instant death to a player for doing a bad thing.
A banishing animation (makes player gradually disappear into smoke) = a kick from the server and possible suspension (permanent or not).
Gold light shining down from the sky to a player = a moderator wanting to help a newbie with problems.
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Lesser moderators (devoted gamers who wanted to help the main game moderators) can be bounty hunters, or represent some invincible assasin clan that controls the government. They are the only other ones who can unconditionally (no consent for dueling) kill other players who cheat. Unlike the moderator, the lesser moderators must kill the cheaters conventionally by PK... albeit, using invincible skills. The main moderator instead... uses a name list, rather than actually roleplay a kick from server and whatnot.
They share common abilities as the moderator:
Damnation (enemy becomes engulfed with fire): This means gradual death to a player caught scamming, cheating, cursing too much. Then player is then kicked from server when body becomes smoke. During this time however, other players may jeer and mock him/her while the burning is in effect.
Poison dart: This results with the cheater gradually dying.... constant loss of life. Obviously, this is a lighter punishment than Damnation.
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These ideas make it so that the lesser moderators also have some sort of fun. If cheating and hacking is too much of a problem, then why not integrate gameplay that fights against it? I\'m sure there are many gamers who would love to be a lesser moderator if they can roleplay an undefeatable assasin. Of course, approval of a lesser moderator should be done very carefully!