The system uses capture cards, input hardware, and machine learning to get around system-level lockdowns.
An unnamed cheater has created a unique auto-aim that, allegedly, works on any platform and is able to bypass system-level lockdowns, reports ArsTechnica. It works by using the basic toolchain and is relatively simple.
The first step is using an external video capture card to record a game's live output and instantly send it to a separate computer. Those display frames are then run through a computer vision-based object detection algorithm that has been trained to find human-shaped enemies in the image (or at least in a small central portion of the image near the targeting reticle).
Once the enemy is identified on the screen, these cheating engines can easily calculate precisely how far and in which direction the mouse needs to move to put that enemy (or even a specific body part, like the head) in the center of the crosshairs. That data is then sent to an input-passthrough device, which emulates the correct mouse input and fires a shot at superhuman speed.
ArsTechnica has also interviewed the cheater behind the system, to whom they refer to as LordofCV to obscure the tool's name. According to LordofCV, their tool wasn't intended to ruin the competitive balance of online shooters. Instead, they say it's meant: "...to give console players a chance in [games] that are already overrun with hackers. Xbox players don't stand a chance... the script would never have been created without request [from users]!"
We sure hope that this cheat will drive game developers to find new, better ways to detect and prohibit cheats in games. In the meantime, you can read the original article by ArsTechnica to learn more about this unfortunate system.