How Using Pirated Software Turns People into Internet Crime Victims

The Business Software Alliance's October report called "Online Software Scams: A Threat to Your Security" reveals the dangers of buying or downloading pirated software. Sadly, pirated software doesn't always advertise that it is counterfeit and often appears to be the "real thing" to the untrained eye. This poses a clear and present danger to anyone shopping for software, whether it be on a e-commerce site, peer to peer (P2P) site or at a more traditional shopping venue.

In the report's introduction it points to an actual example of how a misguided employee of the Wagner Resource Group of McLean Virginia used his office computer to download video and music files using Limewire and exposed the entire corporation to the dark side of the Internet. "In this case, the Wagner employee’s action set off a terrible chain reaction, opening up the firm’s computers to outsiders and exposing the names, dates of birth, and Social Security numbers of about 2,000 of the firm’s clients, including US Supreme Court Justice Stephen Breyer, according to the report.

Although many view downloading a video or music file as a victimless crime, the consequences can become personal when cyber criminals add a little malicious software (often referred to as crimeware) to the mix. Specifically, it can lead to identity (information) theft or turn a user's machine into a zombie, which is controlled remotely and used to commit other misdeeds on the Internet.

It is estimated that one-third of all software is counterfeit. In 2008, a study was conducted that revealed that if software piracy could be reduced by 10 percent in the United States it would generate 32,000 new jobs, $41 billion in economic growth and $7 billion in tax revenues.

A lot of pirated software is sold via downloads. When this occurs, the normal form of payment is a credit or debit card. This means that the person who buys pirated software is providing this information to a criminal, who in turn might use it again or sell it to a third party. Like pirated software, credit/debit card information is sold on the Internet in underground chat rooms.

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Article Author: Ed Dickson

Having worked around financial crimes for a number of years, I noticed they seemed to be on the rise. One reason for this is technology, which grows more rapidly than laws designed to protect us from it. …

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  • 1 - Mark Buckingham

    Oct 08, 2008 at 6:53 am

    Interesting piece. The piracy I hear the most about is computer software, specifically games. The notion of paying for a pirated copy of something seems counterintuitive for the end user. If you're going to pay anyway, why go to the hassle of pirating it?

  • 2 - Brian aka Guppusmaximus

    Oct 08, 2008 at 9:08 am

    a misguided employee of the Wagner Resource Group of McLean Virginia used his office computer to download video and music files using Limewire and exposed the entire corporation to the dark side of the Internet.

    Luke... What dumbass could possibly be your father?!

    Seriously, who the hell pays for pirated software? Who is stupid enough to think that P2P is still a viable & untraceable outlet for illegal d/l'ing so much so to use it on a company computer?? AND.. How did this numb-nut get a job in a financial firm?!

    A lot of pirated software is sold via downloads. When this occurs, the normal form of payment is a credit or debit card. This means that the person who buys pirated software is providing this information to a criminal, who in turn might use it again or sell it to a third party. Like pirated software, credit/debit card information is sold on the Internet in underground chat rooms.

    This mainly happens to people who fall for email phishing,input financial information directly into websites that are not secure(https://)& they don't use paypal or their own bank's service when paying bills.

    I don't think this article is very helpful. If you are striving to "educate" the consumer on these unlawful practices then maybe you should include an article that highlights the measures that can be taken to secure your computer from these "attacks"[if you consider what I just said in the prior paragraph].

  • 3 - bliffle

    Oct 08, 2008 at 9:37 am

    In one sentence: pirated and pirating software is loaded with viruses whose intent is to steal your identity info.

    Why else would anyone provide it free?

    Instead of paying $100 for a copy of Windows you will pay with $10,000 worth of identity theft.

  • 4 - Jakey

    Nov 24, 2008 at 9:56 am

    Stupid dumbass why would you do something like that?..!!

  • 5 - Jakey..

    Nov 24, 2008 at 10:04 am

    go on copter on google its cool..!

  • 6 - bliffle

    Nov 24, 2008 at 11:10 am

    It is not only pirated software that might contain a serious security leak virus, but also paid-for commercial software. I know of two commercial software packages that were being shipped in spite of known viruses in the code. They couldn't get rid of them and they kept shipping. Fortunately, neither company is still around, and I have no idea what happened to their software.

  • 7 - Sherry Vega

    Feb 04, 2009 at 2:42 am

    I agree, anyone dumb enough to use a company computer to download anything off the net has got to be one oar short.

    Today, the dark side of the net shows itself in more ways than downloading pirated software. Which I agree, buying pirated software is very dangerous because of embedded Trojans and their ability to install silently. It is even more dangerous to download P2P software.

    The financial company involved are as much to blame as the guy that downloaded the Trojan. For not protecting their network.

  • 8 - Captain Black

    Apr 16, 2009 at 5:11 pm

    Argh matey! The BSA can put the end of me cock in their mouth and bli'me!

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