They haven't figured out a way to catch cheaters, or they're too lazy/inept to do the deed. If they did we wouldn't see the same cheats every day. Read their message closely and they say it themselves, no mention of security methods, just: 'IF we catch you, we'll maybe ban you'.
Regular players know there is one language server specifically who're responsible for 90%+ of the cheating. Either somehow every player from this language server is an heir to a fortune?!?, or more likely they're employing a "hack" to get items for free.
The lesson? DON'T CHEAT (wink wink, nudge nudge) cause otherwise you may blab about it and someone may tell on you and maybe you will be reprimanded. Other than that, nothing really stopping you. I mean look at IGG customer service, they can't even answer an issue without 10 email replies, constant correction of details, playing ignorant, lying, shuffling off the task to coworkers, etc.
And this is how they handle PAYING CUSTOMERS, how much effort do you think they're actually putting in to establish security and fair play? Bottom Line: this post is Lip Service, nothing is being done. Stop spending and start cheating, just don't be too flashy about it.