Harassment is much worse than in-game scamming. You should have told them that if they didn't stop than they would get reported.

I try to report if I think someone is way in the wrong or what they say is derogatory/crude. I give warnings if they say something 'hurtful' and that normally stops it.

I think in certain situations there is extreme over-reporting, but I honestly believe that a lot of the more serious infractions go unreported. Hard to strike a balance when you're relying on mostly hormonal, can be immature, people to keep the community clean.