it is mostly effective versus goldsellers / gold spamming bots - hacking takes more investigation.
some Phelan quotes from the first hours after the thing went live yesterday:
"ok .. first feedback from me...
12 goldsellers reported and banned, 200 accounts gone now. Bots and hacks will take some time, but support is on it, a screenshot is not enough*, this takes a bit more digging in the database.
Thanks!"
* [to look at the screen and hit ban aka act quick]
[ a text input box and putting it on the home page were requested]
"Let's get some experience with this thing first. Support is still not in the state it should be and even with just announcing this tool via the forums there are a lot of reports coming in. Right now i'd say it's great against goldspam but not really effective for hack(er)s and bots*"
*[bots as in active botting]