There have been concerns that some people might use sockpuppets to report their own posts in order to get a reporter badge.
Seeing how everything that can be abused here gets abused, I have no doubts that would happen, no matter how ridiculous just the though of it doing looks now.
In order to reduce the potential for people reporting their own alts' posts, one option might be to add additional hidden criteria for the various badges, such as posts or threads originally to be in a sufficiently diverse number of subs, or that the result of a report is that the post or thread is sufficiently diverse outcome of removing the post/thread, moving the thread, or editing the post.
Or maybe make it one time thing, just check whoever has xyz amount of good reports and give badges. And then maybe repeat it in 5-10 years, without any announcement of doing so. Some RNG factor like that might discourage those wanting to abuse it.