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On old but enlightening article on cheating at online poker.

What are the online poker rooms doing to stop collusion?

Most all of the poker rooms state that they have software in place to monitor for collusion between players. From my knowledge and what I have read, the software is mainly used to monitor passive forms of collusion. Passive collusion is much easier for the server side to monitor than from other players, because the server always know what the players are holding. So for example, let's say Cheater A is dealt AA and Cheater B is dealt KK. Cheater A raises pre-flop and Cheater B immediately folds, knowing his hand is a huge underdog and to not compete with his friend.

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