, Dan276 wrote

Also what are the penalties if you're caught cheating on Visual Studio Achievements?

Nothing directly will happen, but it can cause a chain of events to occur. While programmer "Dan" is spending the work day trying to boost his Visual Studio Achievements score, over in the next cubicle, programmer "Brian" is busy actually writing code. At the end of the sprint, Brian has finished all the stories he took in and QA calls it "Done". Meanwhile, Dan has barely finished half of what he was supposed to take in. And for the stuff that he did do, it has all kinds of unneeded features that Dan added in search of Visual Studio Achievements.

This goes on for a few months. Brian is getting stuff done. IT has blocked Dan from accessing all social media sites, plus Kickstarter. People are noticing that Brian is the "go to" guy for new features. Dan is still practicing ADD, Achievement Driven Development. 

It's annual review time. In recognition of his achievements, the VP of Development has promoted Brian to manager. This is an actual achievement that includes a nice raise and entry into the manager bonus pool. Dan has been transferred to the legacy product team. He didn't get a raise and now has to learn DCOM. Dan now has to use developer tools that do not award achievements,  they just compile stuff.

TL;DR Version:
The penalty is DCOM