It's very simple, the creator is clearly motivated to remove them, so all he needs is to be pointed to which hacks are being used. If there were a program setup to reward people for reporting hacks, (say, increase the ammo cap, or go the TF2 route and add hats, maybe just a fancy tag on your forum name or whatever, some reward) then one by one the hacks can be taken out, and hackers automatically IP banned. Once the websites distributing the hacks have been reported, then an update can be released blocking them along with the regular update. Ideally, the only hackers left will be people who made their own, because any website distributing a hack will find itself being outdated within a few days.

I figure this will be an excellent way to get rid of hacking programs, since it will motivate people to seek them out and report them, rather than the slow process of waiting for them to be discovered.

Don't you think people will abuse this, and ban regular users, just for the reward?

Ah, perhaps I was unclear, I don't mean reporting hackers, but instead reporting websites and URLs of people distributing hacks. After that it's a simple line of code then to automatically ban people who attempt to log in to a game using the reported hacks.

"A simple line of code"? Oh boy...if it would be that easy...
Your idea of reporting URLs is nice (as long they won't get reported publicly so everyone can see them) but the main problem is the technical one.

Or we could have a voteban that works and good admin tools

I'm nearing a public release with my admin tool.

Third party tools will never be as effective as an officially implemented set

Hell yeah, that would be nice, Lexsym.

@Lexsym, are you planning on releasing the tool as open-source at all? I could understand if you wouldn't want to.