The only thing that can happen, is the account gets banned or closed for some severe violation but modded gear? no.
Reporting peoples profiles will do absolutely nothing on those platforms. I knew this was going to happen when Reaper of Souls expansion went to Xbox One and PS4. That’s why it’s so easy to modify your gear with ridiculous stats. Console versions have their save file saved on the console not on the Blizzard servers. I gave up on the xbox version a year ago cause it’s so polluted with cheaters. They cannot moderate console versions nor do they care.