Microsoft is urging consumers and small businesses to be cautious when buying software, warning them about the risks of accidentally purchasing and using counterfeit products. This advisory comes after a recent raid on a computer vendor in Kembangan Plaza by the Intellectual Property Rights Branch (IPRB) of the Singapore Police Force.
The shop in question had been advertising unauthorized “Microsoft license keys” as genuine and offering computers bundled with counterfeit software at heavily discounted prices through their online store. These computers were being sold with fake Certificates of Authenticity, misleading customers into thinking the installed software was legitimate.
During the raid, authorities seized 43 laptops containing suspected counterfeit copies of Windows 7 Pro and Office Enterprise 2007, along with fake Certificates of Authenticity. The estimated value of the seized goods is S$80,000. The confiscated Lenovo, Dell, and HP laptops are believed to have originally come with DOS operating systems.
Pirated software increases the risk of security breaches and malware infections. Additionally, legitimate computer vendors struggle to compete with those selling cheaper counterfeit software. In this particular case, a concerned vendor alerted Microsoft after a customer, who had unknowingly purchased counterfeit software elsewhere, demanded a refund on a genuine software copy, claiming the other vendor offered a lower price.
Roland Chan, Senior Director of Compliance Programs – Asia-Pacific at BSA | The Software Alliance (BSA), emphasized the importance of consumers and businesses being aware of what software is installed on their systems, despite Singapore’s relatively low rate of unlicensed software use in the Asia-Pacific region. He highlighted the security risks associated with counterfeit software, citing a BSA Global Software Survey that revealed security threats from malware as a primary reason for users avoiding unlicensed software. The survey found that 64% of users were most concerned about unauthorized access by hackers, while 59% worried about data loss.
Singapore has strict copyright laws with severe penalties for infringement. Those found guilty of producing, selling, possessing, or importing infringing copies face fines of up to S$10,000 per copy (totaling S$100,000 per charge) or imprisonment for up to five years. This recent raid is one of several conducted by authorities in recent months, demonstrating their commitment to combating software piracy.
Jonathan Selvasegaram, Corporate Attorney at the Microsoft Digital Crimes Unit (DCU), highlighted the severe consequences of software piracy for unsuspecting users, emphasizing the dangers of spyware, malware, and viruses that can lead to identity theft, data loss, and system failures. He pointed out that even a new branded laptop purchased from the raided vendor contained adware, illustrating the real risks involved. Selvasegaram expressed the DCU’s interest in examining the seized computers thoroughly once the case concludes.
Referencing a joint study by International Data Corporation (IDC) and the National University of Singapore (NUS), Selvasegaram revealed that Asia Pacific enterprises are projected to spend nearly US$230 billion addressing malware issues stemming from pirated software. The majority of this cost (US$170 billion) will be dedicated to handling data breaches. The study also found that 65% of surveyed APAC consumers were most concerned about data loss as a consequence of infected software, followed by unauthorized internet transactions (48%) and potential identity theft (47%).
The study also highlighted concerns among government officials about the potential impact of cybersecurity threats on their nations. The survey revealed that APAC governments are most apprehensive about unauthorized access to confidential government information (57%), the impact of cyberattacks on critical infrastructure (56%), and the loss of business trade secrets or competitive information (55%). It is estimated that governments globally could lose over US$50 billion dealing with the ramifications of malware associated with pirated software.
Microsoft urges both buyers and retailers to only purchase software from reputable vendors and authorized sources. To avoid inadvertently purchasing and using counterfeit software, consumers can visit the provided Microsoft website to learn how to verify the authenticity of Microsoft products.