As per the study conducted by the global consulting firm, companies using non-genuine software are 43 per cent more likely to have critical systems failure.
The use of non-genuine or pirated software can potentially disrupt the smooth functioning of an organisation by adversely affecting their system security infrastructure, KPMG said.
Further, it highlighted that using non-genuine software not only increases threat of data loss and intrusions to personal systems, but also to critical information, communication and telecom infrastructure of the society thereby threatening national security.
Also, it has significant direct and indirect information security implications for the government and corporate organisations as well as individuals when deploying non-genuine software, KPMG said.
KPMG India Executive Director IT Advisory Services Akhilesh Tuteja said, Explosive growth of the internet in the last two decades has made it one of the most used channels for acquiring software quickly.
At the same time higher profit margins and minimal risks associated with counterfeiting genuine software, have given opportunity to anti-social and anti-national elements to make non-genuine software available on the Internet as well as in the physical media, he added.
A system having non-genuine software can adversely impact the overall security of a network. Numbers of hackers develop potentially dangerous software disguised as software with rich functionalities to lure unsuspecting users.