There was a blue post including loot~
Scams and Loot Disputes
Scamming other players is a violation of our World of Warcraft game policies. We will investigate any reports of scamming that we receive and take the appropriate action, removing gains and penalizing those who violate this policy as needed. It’s important to note that Game Masters will not restore any gold or items that may have been lost.
World of Warcraft loot systems empower players to manage loot directly. For this reason, Blizzard support will not redistribute loot in the event of a dispute between players.
If you’re playing with a new group, it’s advised to always be clear on the loot rules before proceeding . Discuss the plans for distributing loot with the raid leader before you become locked into a raid. This will provide you with an opportunity to make an informed decision on whether you want to decline the invitation or leave the group. Multiple loot methods are available in WoW Classic, and we encourage you to group with others you trust, especially when using Master Loot.
In some extreme cases, Game Masters may deem it appropriate to penalize a raid leader who fails to adhere to clearly established looting rules. Please keep in mind that looting rules like “Main Spec > Off Spec” are not enforceable qualifiers.
As dungeon loot is group loot I guess it’s not something they’d even get involved in.
Presumably this is where server reputations come into play.