I can't imagine how this sort of thing could work (the fake book creation). All it takes is one person buying one copy of a fake book, and reporting that it doesn't exist and neither does the seller, and then the seller gets IP banned.
And the bot doesn't get any money, because all new sellers are on probation for quite some time after their first sale before they actually get the money from it.
I suppose that if enough bots did it, eventually somebody would buy something and then not complain for long enough for the bot to profit, but that would downgrade the problem to just a huge annoyance.
The other thing, drop-selling somebody else's book for a huge markup, could work in theory. But there are two ways to look at it: 1) if the bot needs to buy a copy from you to fill his order, hey, you still made a sale. As long as the bot doesn't leave you bad feedback, you get the reward without the risk. 2) If you know it's a bot that's buying your book - if it's a physical copy that you possess - you can simply refuse the sale and/or report the bot for breaking Amazon TOS. He gets IP banned, and maybe his buyer will now come to you.
Anyway, if Amazon is aware of the problem, I'm sure they'll be working on fixing it in their own special way.
EDIT: There is however a well known issue with auto-price matching software that many sellers will use to compete automatically, to a point. That's a different situation though, usually those sellers do actually have the items, and if they're not careful two price-matching bots will fight each other down to a penny.