im not sure what topic to report this under, but there is a player who says he is purchasing equipment already equipped to another player, via hacking. is this possible, and can it be fixed?
An unlikely claim. If your worried can always send in a report using the Contact Support option or by clicking on the player and filing an in-game complaint.
You can also use the /bug command to report it while playing. EG: /bug this guy "name" is saying blah blah.
Pretty much impossible, unless three rings got their programmers from a yard sale, which I doubt.