I just opened an account on a website where you play for money. The website worldwinner.com has all kinds of games like Jeopardy, Wheel of Fortune, Family Feud, and Chess! {I’m not trying to promote but if you go there now you can receive $20 of free credits-no deposit required} There are a lot of people playing chess on that site. You can meet over 100 opponents playing at the same time. Since money is involved, it is very tempting to just use Fritz to play for you. But that defeats the whole purpose of playing chess. The only way to keep other people from taking advantage of you is to just play 1 minute games. 90% of chess games played for money are under 3 minutes. Playing 1 minute games are fine except if you have a slow Internet connection or computer. When I tried on my old computer, it froze up and I lost. Also, on 1 minute games, if your mouse slips-you lose!
Do you think there is a way to play longer games honorably?
Can you suggest a good opening that you can play in 1 minute for black or white?
Thanks! 
Yeah – play in the real world, with someone you can see.
Excellent suggestion! Online chess is not as fun.
And to answer the OP question. I know ICC does try to monitor computer usage, but I’m not sure what percentage of the computer cheats they catch. I suspect since your site has a lot of different games, they can’t be as diligent about looking for computer cheats. Playing for money makes it more tempting.
Unfortunately there are many people who cheat at online games just because they can. I used to play on an online hearts ladder, and people used card counting programs to cheat in order to get to #1 on the ladder. There was no money, and being #1 was rather meaningless outside the group that played at that site. That didn’t stop people from cheating. I personally think it’s rather pathetic, but some people are like that.
i belonged to ICC for a year or so, and only played 5 minute, even though i hate speed chess. I figured, anything longer, and the chess engines come flocking out. Even at 5 minute, several times i’d have the following experience: I’d get the edge on a player. suddenly, even though it’s a 5 minute game, my opponent would take as much as a minute. Suddenly a series of moves would uncork on me quickly, and I’d lose. Now, I’m hardly a GM or anything near it, but I suspected the computer at work.
I have a lot of fun playing on FICS. (Free Internet Chess Server).
I really haven’t come across anybody cheating in FICS, although I’m sure it happens. (Guests are allowed to use engines, and of course, some people actually play using an engine, but have it registered as such.) Guests can’t play rated games of course,.
So I’d have to say a resounding “NO” to the question that chess computers are the death of online chess.
Certainly internet chess is extremely popular among talented youngsters. I dare say that’s the #1 reason for the explosion of high rated youngsters, especially in technology states such as Texas and California.