It's worth pointing out that the hacks seen in the wild all seem to affect the P2P area of the game which means combat interactions. I've not heard of any hacks that get around the transaction server side of things allowing users to hack more money or upgrade ranking.
Also, r
eports on reddit recently indicate that the existing available hack tools don't work with newer version of Elite which the client detects and crashes out. So it's not like Frontier are sitting back doing nothing.
They actually fixed that in the script that's being given away for free within a few days, according to the site, it's working fine currently, AND they had the 1.4 beta release the moment it was released, which tells us that KS backers are among the crowd using the hack, big shocker there eh?
I used to hunt hackers and the people who created the hacks, started as a hobby(I was a hacker myself, white hat) and then as part of my job duties(worked for game hosting companies and ISPs). Name a game, online OR offline, on the PC or Mac, there's a cheat/hack for it somewhere out there, including the big MMOs like WoW(there's more than just scripted bots), and there always WILL be. Hell, even PS and XBox games have hacks now, my son-in-law has had quite a few XBox Live accounts banned and had to replace the actual console multiple times for using them before he finally stopped(and we've made sure my grandson knows that if he even THINKS about doing that, we'll string him up by his toes).
FD is aware of the problem, the site that releases the hack has made mention multiple times of FD countering what they've done and how they have had to work to get around the counters, and they are very clear that they do NOT want the hack used in Open because that is how it gets busted. FD isn't ignoring this issue, they just aren't being real vocal about it, which is the industry standard response.
As to how FD punishes people caught using hacks, that's entirely up to them, and you can be sure we don't KNOW what's happening. I'm sure they are using the soft approach Agony_Aunt talked about, it's typical, I did it when I running servers for a company as opposed to running my own/team servers where we didn't play nice to people we busted with hacks, instant permban. Working for companies however, it was a warning with a tempban, often 3 days, and then we'd watch them when/if they returned. Continue to use a hack, we'd give them a month long ban. When/if they returned, if they used the hack again, permban. We'd give them multiple chances before we got hardcore on them however, and I'm sure FD is doing the same thing, it's good business.