Nintendo has been selling the Switch about as fast as it can build them resulting in some bountiful profits for the company. The Switch has been the subject of some hacks with all the consoles on the market suffering from an unpatchable exploit thanks to the NVIDIA Tegra chip inside. Hackers have been able to leverage that exploit to do things like install Linux on the device. The ability to load unauthorized software led to concerns of piracy for Nintendo.
The exploit may be something that Nintendo can’t fix but it can most certainly tell if you are running pirated software. Nintendo is banning consoles running any pirated software from its network. There are a few ways that Nintendo can detect pirated software, so you might want to think twice before you go that route.