I know you've probably gotten tens and thousands of complaints regarding this issue, because frankly, I can not see how you haven't. The amount of botters in the game has just exploded in the last two expansions since I started playing back in TBC. In case you're unfamiliar with the term "botters" this basically means a person using a third party program to do the playing for them. It's not that I actually think you haven't heard about it, but you guys can really make a man start wondering!
Like myself, everyone else is paying a monthly fee to play this game. A mmorpg! Just considering that fact it's insane that late night battlegrounds or questing areas consists more or less of only bots these days. Nobody that is paying good money to play PvP or to be a social player accepts that we find our self's side by side with a bunch of bots instead. I won't even go into the auction house aspect of this problem because there would be so much to write I don't even dare to think about all of it... But I really pity anyone who has to compete with a computer program that runs tirelessly 24/7 and couldn't care less if it sells all the materials on ah for less then a repair bill combined.
You have all the means necessary to counter his issue. It is your own game for crying out loud! So what solution did you end up chosing with all the possibilities out there? Well basically you don't do anything about it. Sure people can be a good samaritan and report anyone they suspect (or know for a fact is botting if we're gonna be straight forward here) and hope you might do something about it. But what happens? Yes, you "investigate" the problem and check the suspected account. And IF it turns out they're caught by your employees, all you do is suspend their account and send them a e-mail telling them how to get their account back right afterwards. All they have to do is send a identification certificate and a confirmation that they have cleaned their hard drives of malicious software, and voalá. I can hardly believe they have their account back in a matter of hours and are ready to continue botting again the following night. I mean seriously blizzard o.O
You should know the majority of people botting now days isn't accounts that are hacked to earn money for goldsellers. Most bots now is just lazy players that can't bother about leveling characters or professions by them self's, so they get a program that can do the job while they go to sleep or work. And who gets punished for this? Everyone else! Everyone trying to enjoy the game. A game that is suppose to be a mmorpg!
It is about time you really do something about this problem, because it has escalated to the point where the quality of the game has reach a new low-point. There are so many things you could do with all the power and information you possess. Just something as simple like rewinding all the XP, gold, profession skills, gear and anything else the account caught botting has obtained while logged on from it's last IP adress or what ever. You don't even do that!! If someone managed to level 2-3-4-5 classes to max level by using a third party program @ the same IP adress, they shouldn't get away with a little smack on the fingers and a short timeout. Seriously, the punishment for using bots in WoW doesn't even come close to justify the crime. It's all ended up becoming a big joke.
If you really find this to be such a hard problem to tackle, I wouldn't have any issues suspending the bots on sight myself if only given the job. I would do it with the utmost pleasure...
Thank you for your attention.