"Many people are not aware of the potential harm that installing a counterfeit copy of Microsoft Windows could cause," said Michala Alexander, head of anti-piracy in the UK at Microsoft.
"The counterfeit software market is highly lucrative for illegal traders, but people who buy pirated software are putting themselves at risk of cyber-crime and identity theft, which can have dire consequences.
"Using non-genuine software also means that internet fraudsters can access your personal details as pirated goods are typically far less secure."
The top three cities for counterfeit goods are Edinburgh, Newcastle and Birmingham, but the survey revealed some major differences in local attitudes to buying purloined goods.
Only 22 per cent of Newcastle-based respondents felt that buying counterfeit goods is 'totally unacceptable', compared to 46 per cent in Norwich which appears to have the 'most honest' citizens.
Younger people are much more likely to buy pirated goods, the report found. Some 18 per cent of 18-24 year olds are happy to buy pirated goods, compared to seven per cent of those aged 55+.
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