The terms "cycle" and "each other" both imply that there are individual writers and individual clients who sometimes collaborate successfully but who scam each other at other times. In English, "each other" is reserved for situations involving only two people; when you're referring to more than two people -- such as universes of many writers and universes of many customers -- we say "one another." Likewise, "cycle" implies repetition or alternation between individual writers and clients scamming and not scamming each other. Legitimate writers never scam any customers and legitimate customers never scam any writers.
There have also been instances wherein writers have been made to accomplish tasks that were placed into a reserved account.
I have no idea what this is, but it sounds like something having to do with the policies of an essay company.
After they had completed the project, the client disappears out of nowhere without dispersing payment.
This can't happen to an experienced independent writer, because we don't book any project -- much less actually complete it -- until payment has cleared. No essay company I've ever known lists projects until payment has been issued, either; so I'm not sure what you're referring to here. If you're referring to situations where payments fail after having been issued, reputable companies still pay their writers for completed projects and eat the loss rather than expecting their writers to absorb that loss.
And the best way for clients and writers to defend themselves is by ensuring that they double check all of the details and reservations followed by contracts that they get into.
Unless you're referring to writers and clients of essay companies, the best way for clients to protect themselves is to try out any new writer with a short project; and the best way for writers to protect themselves is simply never to schedule any work until it's been paid for in full and never to make any exceptions about that for anybody for any reason.