SEA Malware Study
Max IT 19 Dec 2012

Microsoft today unveiled the results of a Southeast Asia computer security study which found that 63 percent of counterfeit software DVDs and laptop computers with illegal copies of Windows and other software contained high-risk malware infections and viruses. A staggering 85 percent of the sampled DVDs, and almost 1 in 2 sampled computers (49 percent) were found to contain malware. The analysis was conducted by Microsoft's Security Forensics team on 118 samples purchased from resellers in Indonesia, Malaysia, Philippines, Thailand, and Vietnam. In total, this preliminary test sample surfaced nearly 2,000 instances of malware – 403 of them unique – including highly dangerous backdoors,
hijackers, droppers, bots, crackers, password stealers, and trojans.

The research further revealed that in 77 percent of the computers examined, Windows Update had been disabled or re-routed to third-party services. With Windows Update disabled, computer systems bypass genuine software checks and are also denied access to critical security updates, leaving them defenseless against malicious cyber-attacks, virus infections, and hacking. More interestingly is a new trend that was discovered during the course of the study – 44 percent of the sampled, seemingly new laptop computers have had the
original hard drives swapped with malware-infected, recycled drives installed with pirated software.

Cybercriminals use malware for a range of invasive activities generating illegal profit—from stealing consumers' banking and credit card information, to spamming their e-mail and social media contacts with fraudulent requests for charitable donations or bogus offers (e.g., for counterfeit prescription drugs). Increasingly, these activities are conducted by or at the direction of organized, for-profit criminal enterprises. For businesses, the risks associated with using malware-infected, pirated software include low IT productivity, critical system failures and disruptions of service, and theft of confidential company data leading to severe financial loss and reputational harm.

"This study clearly shows that using counterfeit software is a dangerous proposition," said Dr. Dzahar Mansor, National Technology Officer, Microsoft Malaysia. "Pirated software is a breeding ground for cybercrime, and the cost of using it is potentially much higher than the price of buying genuine in the first place. We want to help consumers understand the risks involved and the steps they can take to ensure a safe and secure PC experience."

According to the 2012 Norton Cybercrime Report, the global consumer cost of cybercrime is US$100 billion annually, with an average per-victim impact of US$197. "Using a PC with counterfeit software is like moving into a high-crime neighborhood and leaving your doors open—it's incredibly risky. People with counterfeit software have no guarantee that their sensitive data, activities and communications will be safe from cybercriminals that intend to do harm.
As the results of this study show, the danger of counterfeit is real and consumers should insist on genuine software when purchasing a new PC," said Zahri Hj. Yunos, Acting Chief Executive Officer of CyberSecurity Malaysia, an agency under the Ministry of Science, Technology and Innovation, Malaysia (MOSTI). Calling on consumers to play a proactive role in reducing digital crime, government agencies across Southeast Asia are driving educational outreach efforts—such as Malaysia's "Safe with Genuine" campaign-designed to promote online safety and increase awareness about the importance of using genuine software.

Microsoft advises consumers to take the following steps to avoid the inadvertent purchase of counterfeit software:

• Always ask for genuine software.
• Buy from a trusted reseller and avoid deals that seem "too good to be true".
• Ensure all software purchases come in their original packaging.
• When buying a PC with Windows, look for the genuine label and Certificate of Authenticity that Microsoft

requires be affixed to all PCs on which Windows is pre-installed. As a further check after purchase, log on to www.howtotell.com to confirm the label is authentic. Customers who suspect they've received pirated or counterfeit software are encouraged to report it at www.microsoft.com/piracy. Customers who report suspected violations can provide valuable insights and have a
positive impact in the fight against piracy. Microsoft takes every lead seriously in its effort to ensure a safe digital community for all. Since 2007, the company has received more than 10,000 piracy reports from within SoutheastAsia—many from people who bought a name-brand PC, paying more money to get "the real thing," but ending up with far greater risk and liability at the hands of counterfeiters.

The Southeast Asia findings announced today are in-line with those of a similar study released last week by Microsoft China. Microsoft is currently expanding its research in Southeast Asia to include an even larger sample of PCs and DVDs containing pirated software, and expects to publish the full study results and analysis during the first quarter of 2013.