So, I think something we can all do as a community is this:
On ASB and I am sure on VSB this happens as well... If you make a character in game with a certain name and you decide to delete or name change the character, that old name will not be able to be used even if changed again unless you submit a ticket to the VGN team in support to see if they can make the name available again. What we can do is so people do not create these bogus alt accounts just for wanteds is merely create names that we know could be used for wanteds to insult and then delete the character. No one can use the name again and no one can put the names on wanted.
I can start doing that myself if this gets too out of hand. The only issue that would remain is actually harassing the individual with wanteds and just keep putting that character on wanted, but I really do not see much of a problem with that if you have some rivalry and since there is a CD, it's not horribly bad. I think the bigger problem for people is the harassing words that come after the name, right?
EDIT: We can also make rules on what you name your character because I know some of those names used in wanted are actual people's characters that they played. However, that could stir controversy as this game is a little erotic and some people just use this game to ERP... Unfortunately...