Beware of free software offers

Consumers should be extremely wary of buying discounted software or downloading free software from certain dubious Internet sites, according to a report released today by the Business Software Alliance (BSA).

The report, entitled Online Software Scams: A Threat to Your Personal Security, describes the growing scope of the Internet piracy problem, the links to identity theft and other forms of cyber crime, and the steps that are needed to reduce Internet-based piracy. The report comes at the start of National Cyber Security Awareness Month.

“Although consumers may think they are getting a great deal when they buy discounted software online, the odds are high they may get a substandard product with hidden cyber security threats that expose them to dangers such as identity theft,” said Neil MacBride, vice president and general counsel of BSA, the nation’s leading voice against software piracy.

“Buying directly from software vendors and brand-name retail sites is safe. Buying from online auction sites and unfamiliar retail sites, or downloading software from unfamiliar sources, requires an extra level of consumer caution,” MacBride warned.

For example, according to a survey conducted by Forrester Research on behalf of BSA, one in five US consumers who purchased software online in 2006 experienced major problems such as not receiving their order or not receiving any product at all. The risks to consumers also include allowing criminals open access to sensitive personal and financial information, and infecting one’s computer with tools used in committing cyber crime. The report includes several examples of people who became victims of piracy-related cyber crime, including US Supreme Court Justice Stephen Breyer.

The report also focuses special attention on the problem of pirated software being sold on auction sites such as eBay, where an estimated 50 to 90 percent of software products are either illegally obtained or pirated copies. Often these copies have been knowingly altered with malicious code or malware.

BSA-led Enforcement Efforts Aim to Protect Consumers

As a longtime leader in the fight against software piracy, BSA uses special technology to monitor auction sites and peer-to-peer networks, issuing “takedown requests” when it finds suspicious software being offered on such sites. In 2008, BSA has greatly expanded its ability to monitor auction sites and issue takedown requests, and as a result, BSA has nearly doubled the number of takedown notices sent to Internet Service Providers and tripled the number of notices sent to auction site providers.

Specifically, during the first half of 2008, BSA asked auction site providers to shut down more than 18,000 auctions offering 45,000 products worth a combined $22 million. During the same period, BSA issued more than 48,000 notices related to “BitTorrent” peer-to-peer files that were being used by as many as 633,000 people to download software worth an estimated $525 million. Takedown notices aimed at Internet sources of pirated software reached a record 782,832.

When necessary, BSA files civil lawsuits to try and stop Internet-based piracy and/or refers cases to government agencies for criminal prosecution. The report includes numerous case studies of software pirates who were caught and convicted of scamming unsuspecting consumers.

A previous BSA report, The Fight for Cyber Space , provides additional information on the spread of cyber crime via software piracy and other channels. The US Congress last month passed a new anti-cyber-crime law that gives law enforcement new tools to prosecute cyber crime.

Auction Sites Must Do More; Consumers Must Protect Themselves

Given the growing role of auction sites in software piracy, BSA is calling on auction site providers to take new steps to protect consumers. Specifically, BSA is calling for auction site providers to work more closely with the industry to prevent software piracy; post clearer risk warnings to sellers and buyers; and eliminate the “Buy It Now” option for software purchases, which short-cuts the auction process and makes it harder to monitor and catch the scammers.

The report also offers useful consumer tips, including buying from legitimate sources; taking advantage of free software updates from the original publishers; being wary of products that don’t look genuine; and reporting suspected software fraud at www.bsacybersafety.com or 1-888-NO-PIRACY.

Under BSA’s “Know it / Report it / Reward it” program, individuals who provide qualified, substantiated reports of software piracy are eligible to receive a cash reward of up to $1 million. Software piracy is against the law and can result in damages of up to $150,000 for each software title copied.