Do they? I haven't cheated in games for years, but the only game I can think of that took any immediate action was StarCraft: Brood War. There were a few hacks that would result in your removal instantly. You were not banned, just disconnected.
Halo 2, WoW, RuneScape all banned cheaters in waves. As far as I know they did this as a measure to further impede the cheaters trying to run tests about what actions and behaviors result in negative consequences.
My (naive) approach would be short lived tokens, and a mechanism for disabling and accounts ability to refresh said tokens. I wouldn't mix account management and billing with gameplay. This would in turn force users to open a different session when trying to access this authenticated data and effectively block bad actors immediately.