An Indian chess player caught using a bluetooth headset to receive tips in a chess match has been banned for 10 years. The earpieces were sewn into a cloth cap he always wore and pulled over his ears; on the other end were accomplices who used a computer to relay good moves. While the player, Umakant Sharma, can still play chess in a non-professional sense, this will stay with him as a black mark.
Now imagine that scenario in online gaming. In most cases, widespread cheating is caught and IP addresses or game keys are blocked / suspended. However, one is still able to play by altering his or her IP addresses, using a different email, or repurchasing the game. Certainly one's image is not tarnished outside of the realm of gaming, a fate we suspect Sharma might succumb to.
Then again, I could be wrong. Has there ever been a time you have experienced (or heard from a friend) where in-game cheating affected your out-of-game life?