Actually its report rulebreaking.
Lets say we have this conversation (where ever it happens):
Player Noob: man, i love this new XXXX program, I can hax the items and monies and this bot does it for me its cool.
Fruityla: does it really work well? LOL
Player Noob: oh yeah, its the greatest man, I've been using it for 6 months.
Fruityla: and you didn't get caught? haha!
...
That would constitute something that Fruityla should report, however Hoshi being online but having said nothing would get the benefit of the doubt, since they might be afk or not watching the chat.
@Aaronock: you just did
/edit: removed the link to this thread lol