They say -whoever "they" is-that everyone deserves a second chance, so perhasps a suspension is in order upon a first infringement. Not being able to play and/or earn money may hurt some people enough to make them think about what they have done and give them a final chance to set themselves in the right direction.
If that person were to do it again, they have obviously learned nothing and show great disrespect to the title as well as to other players and the game in general, in which case they should be stripped of any title and be banned from competing (perhaps permanently).
There you go, my two cents worth.
Novel idea:
People who cheat do so to obtain high ratings artificially. The problem with, say, a two-year ban, is that when they are allowed back after the ban, they come back with the high rating which was obtained by cheating. Ok, you could deduct the points they gained from the game they were caught in, but they could've been doing it for years and gained hundreds of points.
Possible solution: Instead of a ban, make the punishment a 1000-point rating deduction! I'm convinced this would be more of a deterrant than a ban, because these narcissistic sorts of people are obsessed with ratings.