I've been thinking on how to further deal with bots. I think it would be more efficient to let the players directly challenge and flag bots rather than waiting for ZOS to be alerted. We should reward players for finding bots and give those accidentally accused a gift for taking up their time, all the while keeping with the flow of the game. Here is my suggestion.
Create a no cost, AOE spell that can be slotted like siege equipment and potions. Call it something interesting like "Daedric Exorcism". Make the targeting similar to how the yellow circle marks where you're trying to set up siege equipment. Every player learns this spell early on.
Set a daily limit on usage. Five casts a day should be more than sufficient. The spell can also be disabled if the suspected bot is currently in combat or some other critical action.
When you spot a potential bot or group of bots hit them with the spell.
Every character in the circle will separated from any others and challenged to prove they're not a bot. My thought is to teleport them to a circle of Meridia's priests who inform the character that Molag Bal is attempting to possess them and by performing a simple, random ritual they can save themselves. Perhaps pressing 3 out of 4 buttons in the right order. Success puts you back where the spell first hit you. Two fails, porting out, or quitting the game flags you as possessed (i.e. you're a bot). ZOS can then auto-ban them or perform an additional bot test.
If the person has proven that they're not a bot then they are immune from being affected by the spell for the next month. In addition, they are gifted with a character bound, 50% experience scroll (Oops, sorry, no hard feelings...). A temporary "Blessing of Meridia" could also be implemented.
Players can be rewarded for finding bots by receiving a similar bound item for every ten bots successfully discovered. Just to deter false accusations every failed accusation results in the spell being unusable for a cool-down period.
Viable?