1. Legal issues. Fines. Possible jail-time.
2. Disgruntled employees may use as leverage. Blackmail.
3. Unethical IT professionals might install hacks on you computer.
4. Lack of vendor updates and support. No protection from new threats, bug fixes, or improvements.
5. Shows lack of ethical leadership.
6. Destroys environment of trust. (i.e. If you steal from others, your employees, suppliers, and other trusted partner will steal on you.
– Consultants advising small enterprises should make them realize that the initial software savings are quickly eaten up by future servicing, liabilities, and risk.