The admin doesn't necessarily do it himself, sometimes modders release a "hotfix" that admins can install to protect their community from griefing/cheating until the devs can provide their own.
Hacking has generally been kept under control in the FPS scene through a combination of VAC/Punkbuster and the community policing itself. There are hackers out there, but they are actually few and far between since they get banned pretty quickly. With MW2 your relying on IW.net and VAC to sort out hackers, but without any immediate human intervention or moderation they can get away with it for lengthily periods of time.



