Pirate software is a false economy for businesses

Businesses should avoid using pirate and counterfeit software, or be prepared to face the consequences

While it may be tempting to use counterfeit software in a bid to minimise costs, businesses should avoid this course of action at all costs. Not only is software piracy illegal, it has negative consequences for everyone concerned. Product vendors, retailers and the end users themselves can all suffer when unlicensed software is used – with damage done to the economy as a whole.

First and foremost, using pirated software increases businesses' exposure to IT security threats, which can cause significant difficulties for a company going forwards. The nominal savings made by avoiding the purchase of genuine IT tools are likely to be wiped out in an instant should the company suffer a security breach. And the reputational damage caused by a data breach can have a long-lasting effect – with brand confidence undermined, entire companies can go to the wall.

The risks of pirate software

Research conducted by IT analyst IDC highlighted the risks faced by companies and individuals who attempt to take short-cuts when acquiring software. There may be a multitude of websites offering free versions for download, but these should be treated with extreme caution. IDC found that a quarter of websites offering counterfeit or pirated software also attempted to install spyware or Trojans onto user's systems. And with the estimated cost of conducting computer repairs estimated at almost £1,000, it is vital for companies to manage risk effectively. Even if they discover at an early stage that their PCs have been infected, meaning the threat of data loss is averted, businesses still face a hefty computer repair bill.

A separate study of counterfeit Microsoft software found that a third of all copied discs could not be installed on to the user's PC. And of the remaining two-thirds, two in five were found to contain additional programs or binaries with known vulnerabilities. So while businesses may think they are getting a bargain when they opt for counterfeit software, the reality is that they are simply storing up problems for the future. Losing the ability to use PCs and other hardware - even for short periods of time - can translate into lost productivity, and have an immediate impact on the bottom line.

When purchasing software, business IT buyers should always look for a Certificate of Authenticity (COA) to help them identify genuine products. Where Microsoft products are concerned, a COA is needed to run software legally. The certificate – a visual identifier - comes with genuine software and should never be purchased without the software it authenticates. All the end user is required to do is use the Installation ID code that comes with their product to register the software online – a process that takes less than one minute.

The challenges of IT consumerisation

IT departments should be able to exercise control over the software installed on their organisation's PCs in the first instance. But modern user habits are creating new problems when it comes to IT security risk management. The arrival of high-speed broadband and cloud computing has blurred the lines between enterprise and consumer IT somewhat, and indeed between the office and employees' homes. Remote working technology enables employees to work from any PC irrespective of location, including their own home computer.

Clearly, it is much more difficult for the IT department to exercise control over the software installed on employees' own machines in their own environment. They ultimately make their own purchasing decisions, and some may choose – when given the opportunity – to adopt counterfeit software rather than paying for an authentic version. This may be seen as a non-malicious action, taken for the sole purpose of reducing cost, but it is not a victimless crime. The perpetrator not only places their own computer at risk, but may inadvertently expose the organisation they work for.

Armed with mobile devices such as USB sticks, and with the ability to work online in the cloud, it is fairly straightforward for employees to transfer files and documents from their home PCs into the office. So where employees' own PCs have become infected, IT security threats can rapidly spread into the workplace. All an employee has to do is plug their USB into their work computer and access an infected file – and suddenly the corporate IT network has also been compromised.

Conclusion

The Cabinet Office reported recently that online crime costs the UK economy an estimated £27 billion per year – with much of this sum being lost through illegal activities. Fraudsters recognise that there are serious amounts of money to be made from online crime, encouraging more people to conduct illegal activity over the web. As such, businesses need to do all they can to combat security breaches.

Refraining from using pirated software is one way in which firms can limit their exposure to online crime – this blocks an easy access route for malware onto users' PCs. But they must also think more carefully about how they use IT in general, particularly mobile devices. Businesses have a responsibility to educate their staff, and warn them against the common threats, but ultimately, individual decision making holds the key.

Where general IT security threats are concerned, companies need to create a culture of effective risk management within their organisations, where workers are encouraged to take advantage of IT, but use it responsibly. It is impossible for the IT department to micro-manage every individual user, but they can empower them with the knowledge they require to avoid the common mistakes when using technology inside and outside of the workplace.