Reporting is really the best thing, and then block the user if it's causing issues for you.
The rules are very clear around this matter.
- Do Not Impersonate Any Of The Staff/MODS
The Staff and MODs are here to help the users and take care of the game. Not under any circumstances should users Impersonate or intentionally create/use names that's easily confused for a Mod or Staff member, and never should any user pretend to be in any possession of in-game and/or forum powers. This is a serious offense and can get you banned for a longer time or even have your account deleted.
It it also considered nothing but a threat if users go around and tell people they will get banned even though they have no right or powers to actually do or say so.
A good rule of thumb is really checking up on the staff list if someone comes up to you in the game and start yapping about being an administrator or moderator.