Yeah life sucks when everything and everyone has to be untrusted (applies not just video games).

The solution is to build trusted spaces again IMO.

For video games assume that each user is trusted by default. As soon as they violate that trust by cheating, they are banned permanently for that copy of the game. If they want to be trusted again they have to buy another copy of the game to get another license. Make it hard to become a member of a trusted community and easy to be kicked out of a trusted community for violating trust. This would eliminate the vast majority of cheating and bots because most gamers are kids and having to buy a fresh copy will hit hard. If they abuse it enough, make them jump through more hoops like ip bans and computer fingerprint bans.