I come from the Gran Turismo racing community (don't laugh...it's a huge and very competitive group, even if it is light years behind LFS in terms of "simulation").
As a Race Admin, OLR (a euphemism for what the GT world calls online racing) forum admin, and active iLink (GT3) and LAN (GT4) racer, one of the great concerns was always cheaters. In traditional OLR, drivers would submit times for a hotlap or race, the Race Admin would compile the results and declare the winner. In the early days, there was no definitive way to detect cheaters...suspicious times required a "walk through" of the lap in question, declaring apex speeds, gears, etc. and it was often tedious to declare a submitted time clean or foul.
Later, we had the Dex Drive and then the SharkPort which allowed saved replays to be emailed to Race Admins/Stewards for review, and cheating became more difficult to get away with.
Ultimately in this community, most forums/boards adopted a 2 strike policy. If you were caught cheating once, you were given 1 strike, not including any "punishment" for the infraction itself (loss of points, DQ's from an event, etc.) On the 2nd strike, you (you screen name) were permanently banned from further competition at that forum, and often word got to other forums that you were "not to be trusted" by any means.
The bottom line is, Gran Tursimo RA's, Stewards, Admins, moderators and drivers learned that this loss of credibility was the biggest deterrent to cheating.