These in turn, it explained, pave the way for data loss, ID theft and viruses.
Much of the blame for piracy is placed at the feet of the young, who are accused of being street savvy, but not tech savvy.
This disconnect is blamed for their tendency to download files that could be malicious, and for opening up home PCs, which could be used by flexible workers, to the risk of infection.
Michala Wardell, head of anti-piracy at Microsoft in the UK, said that parents should do more to protect both their home computers, and their children.
"File sharing is a great technology, but parents should make sure that their children are doing it legally."
"We know that there are dangers associated with downloading illegal software; research has shown a computer running pirated software is more likely to catch viruses - leaving the back gate open to identity fraud or the loss of photos and other files saved on the computer."