In many online chess lobbies, I've seen instances of 'engining', where a cheater would open a chess program at the same time as the main game window. He would then set it up so that the opponent's moves are relayed to the computer, then which he would copy the computer's moves, until he (almost always) wins.
As a game developer and moderator, what is there to do about this situation?
I can't see that there is anyway to prevent someone to using a chess engine to assist them, unless you can observe the player.
You might have some luck protecting against fully automated bots, though.