Well as you see - every MMOG and especially FPS have a very hard cheater problem, and developers are doing minimal effort on solving the problem, that's a fact, developers are not obliged by law to implement proper protections, detections and logging against cheaters, if they where, even Microsoft would had been forced to implement process containers and protection for apps from injection and memory read/writes but they arent and every kid using any AI (i guess aside codex) can code a cheat and ruin other players experience with it.
Making it illegal - automatically would remove most of cheaters since now it would be a risk of a fine or other legal actions, and to implement legal control over it you would have to verify your ID with your account, and link it to you, but people nowadays are too paranoid about this so, i guess, there is no point on bringing this part up to avoid holywar in this comment section.
about real world LAW - real world one punishes you in jail, this should at least be a fine for the first and maybe second times you get caught, then it can expand to upper levels of punishment, i agree with you here, i miswrote my idea by directly putting = between fraud law irl and related to cheaters.