They say they can see your hole cards, but chances are they cannot.
With Pokerstars being such a big site they have a lot of tables to watch over. With that being said though, they do have programs in place that if anyone is caught using cheats they will prosecute them. There are a number of cheats out there that can work for a little while but they will eventually get caught with them.
You shouldn't believe everything that people tell you, especially poker players. LOL
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