Nintendo Switch appears to have been fully hacked but it was not possible to play games on it until recently when a method was discovered that let anyone with access to a hacked switch simply swap game files to run a pirated copy of the game.
The widespread piracy issues that are currently a problem on the Nintendo Switch might be a thing of the past as the discovery made by the people who have hacked their Nintendo Switch confirms that there are enough security checks in place to make sure that the account is banned instantly.
This was shared on the Switch Hacks subreddit where the user has explained in detail how the online authorization works for the Nintendo Switch.
It is possible for Nintendo to detect when a user inserts a game card in order to authorize them for the bonus gold coins. The game card data is also available allowed if it is authorized by Nintendo so it is not possible to share game card data between different games in order to bypass security.
Similar strong security measures are utilized for the digital games. Certificates are used to determine the authenticity of the games and then if they pass the security checks, only then the game will be allowed to go online. Basically, it will be very hard to go online with pirated games without getting detected by Nintendo, however, this doesn’t mean you can’t use your device offline.