Actually, cheating is indeed running rampant through the ranks of the game. Contrary to what was said above, there is little monitoring going on at all for this activity. I've had to personally report over a half dozen such people with multiple accounts. Every week you can see them across the leaderboard in both Hack and Amateur tiers.
The problem is, you can monitor by IP, but since there could be more than one person playing at the same house, it's not definitive proof of the same person playing with multiple accounts. Anyone can create multiple email accounts to go along with their numerous WGT accounts, and therefore can enter tournaments many times. Most of these accounts are 'flash-in-the-pan', meaning they have incredible results right off the bat and then you never hear or see from them again, most likely because another account has been created to keep from drawing too much attention.
In the Hack division there is a ton of sandbagging that goes on as well. It becomes obvious when you see great score after great score followed by a huge score to keep the average above the Amateur cut off line. No decisive way to deal with it quite yet other than to call people on it when you see it, just like in real golf.
While virtual golf is different from real golf, this page here describes the odds involved in beating your average in a tournament, created by Dean Knuth, Director of Handicapping of the USGA and a total math whiz. It's not entirely applicable to the game we play here, but it does give you an idea of what kind of odds it takes for someone to shoot even 4 strokes beneath their average. Let's just say it shouldn't happen very often at all, and if you see it happening consistently for someone in the tournaments, chances are they are sandbagging. How you respond from there is your call...