This is partly why people cheat in the first place.
The whole "three strikes" system has led to habitual cheaters going right back to business after getting caught once because they know they can just figure out what went wrong, then resume their activity with little fear of actually caught a second time. If there's strong evidence suggesting a player has been involved in illicit activity for an extended period of time they should just get perma-banned then and there.
The fact that now strikes decay over time just gives them even more leeway to abuse the system.