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The software giant reached an agreement with the owner of 3322.org, a site that has been linked to malware such as the Nitol botnet.
Discovery leads to investigation and disruption of Nitol botnet and attempt to shut down subdomains linked to more than 500 types of malware.
Microsoft has admitted it found PCs that were infected with malware somewhere in the supply chain, before it even reached a consumer.
The study claims consumers will spend $25 billion, and waste a collective 1.2 billion hours, fixing problems created by malware on pirated software.