It's a low hit rate but not non existent... encountered quite a few cheaters on my grind for the umbral emblem and I did get maybe 4/5 or so messages saying action was taken.

Ah yes the famous "action was taken" message. I remember reporting an obvious cheater a few months ago. (My only report in months and months) I got the message "action was taken" the next day. So...imagine my surprise when i found this exact cheater in my team later on lmao. Same for the day one teams that got banned. Most of them are stikl around. I know a player that had his day one removed from the list, but his team and the cheater that helped them are still around lmao

The cheater told Bungie, " no you " and unbanned himself lmao

I didn't check to see if those I reported were still playing but yes would not surprise me if they were.