That's not right...
I like your first three points, but the fourth and fifth are not all right.
Some people play/fight for ELO and saying: "This game was a test, no ELO changed" is deceiving them.
And you'd only confirm that there are people in that band that cheat without being able to individually getting them. And to check if someone is using an engine, you'd need more than one game with them (after all, this is a statistical system).
Your idea is good, but your method and goal is not completely viable.
This is my opinion of course. There may be other people that see this diferently.
Anyway, keep studying and playing and having fun, because that's what will make you evolve and keep interested in the game ^^
The website assumes that sub- 2000 players don't cheat as if they did, their rating would be much higher. However, this naive assumption does not take into account the following type of players who are in fact the ones most likely to cheat:
1) Part-time cheaters: These are the people who believe their rating should be higher that it actually is. Hence they use engines to bring their rating up to a certain level. Once they reach this level, they play without using engines, lose, and their rating goes down. Then they start using engines to up their rating again.
2) Part - game cheaters: These are the people who start out playing normally and without engine assistance. Then they hang a piece or overlook a fork. Rather than resigning they turn on an engine and try to salvage the situation.
I have found maximum no. of such cheaters in the rating range 1350 - 1450. Because of this, a lot of good players are stuck in this band and are not able to progress ahead.
So, what to do about it?
The first step is detection and confirmation.
For this, I have the following suggestions for the website:
1) Run an engine at an elo level of 500 points more than the rating band which is being tested. For eg. if you are testing in the rating band 1350 - 1450, the engine elo must be 1950.
2) This engine should target only 10% of the users to avoid inconvenience. The users whom the engine plays against should be randomly selected. There should be no indication from the username that the user is actually playing against an engine. So the user would actually believe that he is playing a regular player. The engine should keep changing its username to avoid detection.
3) If a person loses to this engine, his rating points should not be deducted.
4) The engine can be expected to win 96% of the games. If its win percentage is less than this, then it indicates that a portion of the users sampled are cheating.
5) The actual percentage of users in the sampled rating band who are cheating can be calculated using the engine's actual win percentage and the relevant formulas for the rating system used on the site. This number should be calculated and the statistics made public so that users know how many cheaters are there in each rating band.
[Please limit all discussions on cheating to the Cheating Forum group or Off-Topic Forum - mod]