According to The Division’s Community Manager Yanncik Banchereu, once update 1.1 drops players will be able to report cheating in the PC version of the Division. Cheaters will be offered a second change in the form of a three day ban. If the cheater is caught again, they’ll be banned permanently. Currently, this is only an issue on the PC version and non-existent on the PS4 and Xbox One version.
To report a cheater, you’ll be able to type /report [NAME] which will manually flag that account for the team to review. This will be a temporary fix until a better solution is developed to automatically determine when players are hacking the game.