That just means the cheater will use multiple accounts. Imagine that: cheaters reporting and cleaning spam to get paid 
Interesting concept, they would finally get a chance to do something good for a change 
To be honest, I don't think that money incentive is even needed to boost reporting numbers as badges would probably do the trick. Then again, badges could also be manipulated in the same way, and could be one of the reasons why he haven't seen them yet.
I don't think most of the members care about badges in their profiles, but there are few exceptions.for example designer pizza badge looks cool, so I guess hammer would look good for top reporters.