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But this is a bit of a moot point because no one just uses a cracked key for no reason - they use it because their software is also cracked (so #2) and even if you have legally obtained software, just putting in a cracked key is not necessarily safe (because of #1).
This War Of Mine: Complete Edition Full Crack [Crack Serial Key
In the olden days it used to be that programs would simply run a mathematical operation on the key and decide whether they accept it or not (and even earlier, there would literally be a few questions with a secret answer). The exact algorithm would be secret and hard to guess, so you would basically only be able to run the software if the developer generates a correct key for you. Crackers would reverse engineer the algorithm and generate their own keys - it's hard to see how a software could distinguish between keys generated by copyright infringers and keys generated by the developer (in fact, its ability to distinguish this was the algorithm in the first place, and that has already been defeated at this point). Granted, often the crackers then distribute the key generator with a virus in it, so there's that.
According to a 2017 rewrite of this NIST report, many websites have rules that actually have the opposite effect on the security of their users. This includes complex composition rules as well as forced password changes after certain periods of time. While these rules have long been widespread, they have also long been seen as annoying and ineffective by both users and cyber-security experts.[58] The NIST recommends people use longer phrases as passwords (and advises websites to raise the maximum password length) instead of hard-to-remember passwords with "illusory complexity" such as "pA55w+rd".[59] A user prevented from using the password "password" may simply choose "Password1" if required to include a number and uppercase letter. Combined with forced periodic password changes, this can lead to passwords that are difficult to remember but easy to crack.[56]