Malware In Pirated Software To Cost Enterprises $491 Billion In 2014: Study

Malware related issues linked to using pirated software could cost companies and enterprises nearly $491 billion this year alone, according to a joint study by the National University of Singapore (NUS) and the International Data Corporation (IDC), with nearly $364 billion likely to be spent on handling data breaches.

Malware related issues linked to using pirated software could cost companies and enterprises nearly $491 billion this year alone, according to a joint study by the National University of Singapore (NUS) and the International Data Corporation (IDC), with nearly $364 billion likely to be spent on handling data breaches.

The study, sponsored by Microsoft and published this month, found that nearly 46 percent of computers purchased from common distribution sources – such as computer specialty shops, resellers, and local markets – came with dangerous malware, including viruses, worms, Trojan horses, rootkits, and unwanted Adware.

Analysing 203 computers bought from 11 countries, the researchers also found that chance of encountering malware in a pirated copy of software is one in three, while the chance of encountering malware in a PC purchased with pirated software is more than 60 percent.

“Whether you are knowingly or, unfortunately, unknowingly using pirated software, you will indubitably come face to face with malware somewhere along the way,” wrote the report.

[quote]“Much of this malware is created by criminal organizations with illegal financial gain, data theft, espionage, or other mayhem in mind,” they added. The study claimed that almost two-thirds of enterprise losses, or $315 billion, would have stemmed from the activity of criminal organisations.[/quote]

Consumers were not spared either – the study expected them to spend nearly $25 billion and waste 1.2 billion hours in 2014 dealing with security issues created by malware on pirated software.

Despite this, about 43 percent of consumers don’t routinely install security updates on their computers, the study claimed.

Not surprisingly, the study found that infection rates were higher in emerging markets, where more consumers and enterprises acquire software and PCs from suspect sources.

Of the countries surveyed, China, Thailand, and Mexico had the highest rate of PC infections and of infections of software bundled with PCs.

Meanwhile, due to the prevalence of pirated software in Asia-Pacific, the study estimated the region would account for nearly 60 percent of all infected pirated software in the world, despite having just 40 percent of all computers used in the world.

The study recommended consumers and enterprises to buy only computers from a trusted source. Additionally, enterprises should run frequent security updates and monitoring the use of software installed by employees.

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“Using pirated software is like walking through a field of landmines: You do not know when you will come upon something nasty, but if you do it can be very destructive,” said IDC Chief Researcher John Gantz in an interview with the Times of India.

[quote]”Buying legitimate software is less expensive in the long run… at least you know that you would not get anything ‘extra’ in the form of malware,” he said.[/quote]