How does Blizz go about...

[TigerX]

... Banning accounts where all you do is leveling for a few hours a day and no farming on them whatsoever?

All of the bans im seeing are bans because guys are online nearly 24/7 farming and then selling gold...

 

[Xploit]

If a person spots you and then reports you for botting, Blizz will look into the matter, and if they catch you, they ban you.

 

[ski]

If a person spots you and then reports you for botting, Blizz will look into the matter, and if they catch you, they ban you.

There's a lot more to it then this, but to keep this thread simple, there are three types of bans:

1) Observation bans, these come from player reports and GM watching or flagging you
2) Hard Detection bans, these come from a Warden detection, instant permaban
3) Server-Side Flag bans, these come from when your character/account sets off numerous red flags on the server side. We don't know what these flags are and they are impossible to counter. Most bans you see fall under this category.