Can Hacked Items Cause XBL Ban?

I'm wondering if hacked items on PSO for the Xbox can lead to being banned?
The reason I ask is I recently purchased a Hunters License after about 10
months of inactivity. I have a 14 year old step son who is also playing
online, and he's been accepting hacked stuff from what I can tell. He gets
tons of photo drops, photo sphears and wepaons. One weapon I noticed was a
Double Cannon with Cave percentages at 127%. When he's doing 1500 pts of
damage with a level 25 character, you tend to notice these things.

Anyway, if this is something that could potentially get my XBL account
banned I will put an end to it, but if its harmless even tho I don't agree
with him accepting these things I will let it go.

Could anyone out there shed some light on the subject?
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