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What Happens When Activation Tools Aren’t Genuine?

Lately I’ve seen references to various activation tools online that promise to unlock paid software without a license, and it made me wonder what really happens under the hood. I’m mostly curious about the consequences — do these tools modify system files, change registry settings, or interfere with updates? For anyone who’s dug into this deeply, what technical risks have you observed? I’m especially interested in knowing how these modifications might affect system stability or security over time.