What are Bug Bounty Programs?

The digital world is a lot like the Old West: lawless criminals are looking to take advantage of any bug, flaw or vulnerability to exploit. To combat the problems from these flaws, many organizations offer bounties to anyone who can find them before cybercriminals.

Because bugs can be challenging to spot, bug bounty programs leverage ethical hackers' expertise to spot corporate software's flaws. Some of the largest corporations in the world, including Google, Microsoft, and the U.S. Department of Defense, offer significant rewards to anyone who can find vulnerabilities in their systems and help fix them. These programs keep systems safe and offer ethical hackers a chance to use their skills.

Read on to learn more about bug bounty programs and how to leverage them to keep your software secure.

How bug bounty programs work

Organizations offer bug bounties as rewards or incentives to independent security researchers (also called bug bounty hunters and ethical hackers) for discovering and reporting vulnerabilities in their software, websites or systems.

Bug bounty programs encourage ethical hacking and responsible disclosure of security flaws. They help companies improve their cybersecurity posture and protect their digital assets. These programs vary in size depending on the severity of the vulnerability, ranging from small monetary rewards to substantial cash. In 2022, Google announced the largest bug bounty ever awarded, $605,000, for a significant non-disclosed security flaw.

Organizations leverage two primary models for their bug bounty programs: in-house and platform-based.

In-house bug bounty programs

In-house programs are managed directly by the organization that owns the system or software. They build and manage their own bug bounty policies, guidelines and reward structure. The organization receives vulnerability reports, validates them and coordinates with internal teams to fix the issues.

For example, Splunk has an in-house bounty program, the Vulnerability Disclosure Program, which is part of Splunk Protects that covers security plus data privacy and compliance.

In-house programs require more resources since the company needs a dedicated team to manage the process.

Platform-based bug bounty programs

Platform-based programs are managed by third-party bug bounty platforms that are intermediaries between security researchers and organizations. These platforms offer the necessary infrastructure, policies and processes to run an effective bug bounty program.

These platform-based options help companies streamline the submission, validation and reward distribution processes to make them more efficient and effective. They have a more standardized experience for both organizations and researchers.

(Learn the differences between white hat vs. black hat hacking.)

The role of bug bounty hunters

Bug bounty hunters come from diverse backgrounds and possess many skills that make them uniquely equipped to tackle different cybersecurity challenges.

Their deep expertise in web application security, networking and reverse engineering plays a crucial role in identifying and reporting software, websites and systems vulnerabilities.

Bug bounty hunters use this expertise to find security flaws in target systems. They employ various tools, techniques and methodologies to identify vulnerabilities that malicious actors could exploit. Common resources for bounties hunters include:

• HackerOne
• BugCrowd
• The Daily Swig
• BugBountyHunter

In some cases, bounty hunters may collaborate with an organization’s security team to help them better understand the vulnerability and develop an effective patch or solution.

Once they discover a vulnerability, ethical hackers report it to the organization or bug bounty platform, following the program’s guidelines for responsible disclosure. This includes providing detailed information about:

• The vulnerability
• Its potential impact
• Steps to reproduce the issue

While monetary rewards play a significant role in bounty hunters’ participation, they also have other motivations. For example, they can build a reputation within the cybersecurity community. This can lead to increased recognition, opportunities for professional growth and potentially higher rewards for their discoveries. 

Benefits of bug bounties for organizations

Bug bounties provide organizations with many benefits and contribute to improving both cybersecurity and overall business operations. Tese programs in popularity in both the public and private sectors as organizations realize their advantages. 

Improved security

Organizations better identify and fix vulnerabilities that internal teams and automated security tools can easily miss. By engaging with a diverse pool of security researchers, companies build a stronger defense against potential cyberattacks. 

(Utilize both offensive & defensive security strategies.)

Cost-effective

Leveraging full-time security professionals and relying solely on traditional penetration testing is an expensive and time-consuming process. Bug bounty programs are far more cost-effective because bounty hunters are paid only when they discover and report a valid vulnerability. 

Implementing programs help business reduce the overall cost of securing systems — without exposing themselves to additional risk. 

Access to a diverse talent pool

Bug bounty programs tap into a global network of security researchers. These researchers have various skill sets and backgrounds, offering organizations more expertise and perspectives to address complex security challenges. 

Continuous testing and learning

Bug bounty hunters are constantly probing systems for vulnerabilities and flaws. Companies benefit from this ongoing security testing, which helps them identify new vulnerabilities that emerge from technological changes or the threat landscape. 

Reputation management and public trust

An effective bug bounty program enhances a company’s reputation as a responsible and proactive player in cybersecurity. This builds trust among customers, partners and stakeholders who appreciate the commitment to security. 

Examples of successful bug bounty programs

The biggest and most secure organizations worldwide leverage bounty programs to keep their software and users safe. Here are some of the biggest bounty programs today. 

Google Vulnerability Reward Program

Since November 2010, Alphabet (Google’s parent company) has run the Vulnerability Reward Program (VRP). VRP encourages security research to find and report vulnerabilities in Google and other subsidiaries, including YouTube, Android and Google Cloud. In addition to monetary rewards, Google maintains a public “Hall of Fame” to recognize and appreciate the contributions of security researchers who have participated in the VRP. 

The success of VRP is evident in the thousands of vulnerabilities that security researchers have identified and helped fix since its inception over a decade ago. It has served as a model for many other companies that have since implemented effective bug bounty programs of their own. 

Meta Bug Bounty

Meta also operated a bug bounty program to encourage bounty hunters to discover and report vulnerabilities in its products and services. Since it was launched in 2011, Meta has paid more than $16 million in bug bounties. In 2022 alone, it awarded over $2 million to security researchers in more than 45 countries. 

Meta’s program has succeeded, with over 170,000 reports — with over 8,500 receiving a bounty. Over the years, Meta has expanded and refined its program to keep pace with the evolving threat landscape and changing technologies. It’s contributed significantly to the company’s cybersecurity efforts, allowing the security team to identify and resolve numerous vulnerabilities in its platform. 

U.S. Department of Defense “Hack the Pentagon”

The United States government long shunned ethical hackers. The government even went as far as instituting the Computer Fraud and Abuse Act, which made it illegal to hack protected systems, even just to reveal weaknesses. 

Over time, however, the Department of Defense decided to instead leverage ethical hackers with its Hack the Pentagon program in 2016. The program engages hundreds of security researchers worldwide to identify and disclose DoD asset vulnerabilities lawfully. 

The first-ever federal bug bounty program was a success. Almost 7,000 vulnerabilities were discovered, and the government awarded 15 bounties. It has since run the program several times to find and address numerous system vulnerabilities, enhancing overall government security.

(Read about Splunker Mick Baccio’s experience with Hackers on the Hill, another federal security program.)

Bug bounty best practices

A successful bug bounty program requires careful planning and adherence to best practices. Some to keep in mind for organizations considering a bug bounty program include:

Defining the scope and objectives

Clearly outline the scope of your program and specify which products, services and systems are included. It will help researchers to:

• Focus their efforts.
• Report only relevant vulnerabilities.

Establishing clear guidelines and rules

Establish guidelines for eligible vulnerabilities, detailing the types of security flaws that qualify for rewards. This helps researchers understand what issues are valuable — and avoids inundating the organization with irrelevant reports.

Also, develop a comprehensive policy outlining the expectations for reporting vulnerabilities, including the submission process, required information, and communication channels. It ensures bounty hunters disclose vulnerabilities responsibly, allowing your organization to address them effectively.

Setting up a responsive triage process

Dedicate sufficient resources to review and validate vulnerability reports. Also, develop and implement fixes in a timely manner. It will ensure that vulnerabilities are addressed promptly and reduce the risk of exploitation.

Offering competitive rewards

Design a transparent and competitive reward structure based on the severity and impact of reported vulnerabilities. This will incentivize bounty hunters to participate in the program and motivate them to find high-impact issues.

Consider offering non-monetary rewards that will benefit their career. Promote your top bounty hunters and show appreciation for their valuable contributions, similar to Google’s “Hall of Fame.”  For example, create a dedicated page on your company’s website or bug bounty platform to showcase the names and achievements of top bounty hunters. You can also share the accomplishments of successful bounty hunters on your company’s social media channels. It will provide recognition and highlight your organization’s commitment to cybersecurity.

Providing resources and support for participants

Foster a collaborative relationship with bounty hunters. Maintain open communication channels, provide bounty hunters with prompt feedback, and keep them informed about the progress of reported issues.  Establish a dedicated communication platform or channels — forums, email, chat — where they can ask questions, clarify doubts and receive guidance from your security team.

Also, consider offering educational materials, such as tutorials, webinars, blog posts or guides, that help bounty hunters develop their skills and better understand the technologies and security practices relevant to your systems.

Enhancing security with the ethical hacking community

Bug bounty programs are a proven and effective approach to enhancing organization cybersecurity. By leveraging the skills and expertise of a global community of security researchers, bug bounty programs enable organizations to identify and address undetected vulnerabilities before malicious actors.

Achieving success requires following best practices, providing resources and support to participants, and maintaining a strong relationship with the ethical hacker community. As cyber threats evolve, bug bounty programs will remain crucial to a comprehensive and proactive cybersecurity strategy.