Ahh, you poor, innocent soul. You still dont know how this game works... look around a few posts back. I may or may not have mentioned some guides of mine... and
Grim points to a few too.
To answer your question - you cant actually confront them over their cheating. You may compete over them, if you know what youre doing, but not confront them. The AI can, but youre not the AI. Youre just a human... (hopefully, anyway)
As a side note, comb through this thread - we have all posted a ton of information about the game, thats not posted in any guides. Its just... loose and dangerous out there. Wish someone would compile that crap into a single post... oh well.