Counterfeit Software – A Hidden IT Security Gap in Companies

The current pandemic, which has turned billions of people into remote workers overnight, has reminded many companies of the importance of computer security when it comes to ensuring unobstructed business operations and employee efficiency. Secure remote access to the business resources, apps and data has become one of the main challenges in many organizations. Among the significant sources of security risks is the use of counterfeit software, which often happens without the company’s knowledge.

Although most organizations are well familiar with the technical, legal and financial consequences of the use of counterfeit software, researchers have determined that they often underestimate the risk of the employees being those who can open the door to this – by installing non-licensed programs from unchecked online sources and without the company’s knowledge. The danger is even greater in the period when an increasing number of computer devices is used in companies, including devices that the employees bring from home.

An additional challenge is the increasingly frequent practice of a simple and comfortable online purchase of software, where it is sometimes hard to check what it is that we are buying. That is why it is certainly recommendable to be cautious about whether a seemingly favorable online offer perhaps conceals counterfeit or stolen software or a commercial-use program without a license.

Each third counterfeit copy causes infection

The sale of counterfeit software is closely connected with the activities of criminal groups, which can infect personal computers with viruses and trojans and jeopardize the IT security in the company.

Research agency IDC* has determined that each third counterfeit copy of PC software causes infection with malware, such as unwanted adware, programs which steal passwords and user details, programs which track keyboard strokes or even enable criminals to take control of your computer.

The less organization there is, the higher the risk is of economic damage due to the use of infected counterfeit software.


The consequences of infection with pirated programs – the main concerns in European companies:

– loss of data (45%)
– time and money for removing the infection (38%)
– crash of the information system (31%)
– loss of intellectual property and data (24%)

Check whether you have adequate licenses

Microsoft offers to companies and organizations licensing solutions that help them check whether their software is truly original. To that end, they can address Microsoft’s representative for volume licensing or an authorized Microsoft vendor.

More advice on how to recognize whether your Microsoft software or hardware is original can be found on the How to Tell webpage.

A special warning: purchase of license key

With the exception of (physical) cards with product keys which are sold along with the confirmation of original software, Microsoft does not sell keys as individual products to end users. Those keys can be stolen and counterfeited or are keys which were initially meant for volume licensing. A volume licensing key is connected with a certain organization and can be used exclusively by the employees at the workplace.

What are the consequences? If you buy a stolen or counterfeited software key and try to active Windows or Office, the activation can fail because the key is already used on another computer. Microsoft later needs to block its use when it is notified that the key is stolen.

5 recommendations for a safer online purchase of software

1. Pick an authorized online vendor.

2. Check the online vendor on pages such as Contact Us or About Us. If those pages do not feature contact info, it often means that software counterfeiters are hiding their location and do not want to reveal the identity of their company.

3. Avoid auction sites.

4. Use a safe payment method. Don’t pay by cash or immediate money transfers.

5. Save pages with orders, emails, bills and invoices pertaining to the purchase of software. You might need the saved documents to be able to return the software if you suspect it is counterfeited.

* Causes and Costs of Security Threats from Pirated Software in Europe 2017, IDC

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