A senior executive from Microsoft says that highly organized syndicates are infiltrating developer programs around the world to defraud the company. The thieves are said to pose as software developers to gain access to genuine software keys, which are then sold on the Internet.

A case last month involving eBay Australia brought attention to the practice. Ray Smith, a businessman from Queensland, bought what he thought was legitimate Windows 7 Professional software. When he attempted to activate the licenses, he found that the software was useless. When he reported the problem to Microsoft, he was told the product keys were only for testing and development use by members of the Microsoft Developer Network. The eBay seller cannot be found and Smith was not compensated because the software was obtained through unauthorized means.

Microsoft is a target for international crime syndicates. Microsoft issues thousands of notices each year to people suspected of illegally selling its software. It has also invested in software key-blocking technology. The company employs hundreds of staff to curb software piracy.