Why Choose Bug Bounty Programs? (Benefits and Challenges Explained)

Diligent software developers must follow secure development practices, industry standards, and regulatory requirements when handling software vulnerabilities. Handling vulnerabilities is a complex, multi-step process that involves various methods and stages. One effective approach to finding vulnerabilities is through Bug Bounty programs.

Preparing for a Bug Bounty Program

Before launching a Bug Bounty program, a company should already have established processes for identifying vulnerabilities. It is crucial to have experience working with third-party organizations for code and process security audits, commonly known as penetration testing. Having experience with red teaming is even better.

However, these initiatives can be quite expensive, costing a significant amount for each contract. The results can vary, and sometimes they are not very impressive. The identified flaws might not be relevant to your area of interest or may only cover a portion of the possible vulnerabilities. Bug Bounty programs allow you to engage a large pool of independent researchers with various skill levels to search for vulnerabilities based on your specific requirements.

The situation varies for each company. Some conduct short, automated pen tests one to four times a year, while red teaming, though more thorough, is done less frequently. In contrast, with a Bug Bounty program, you can receive reports up to 30 times a year. Simply put, this approach can yield significantly better results and uncover critical security issues. Many experts believe that Bug Bounty is the most effective method for third-party security assessment.

When launching a Bug Bounty program, you have different approaches to choose from. You can focus on searching for CVEs (Common Vulnerabilities and Exposures), or you can design scenarios that involve unacceptable events and offer rewards for finding and addressing those specific issues.

The latter approach is more effective because researchers can achieve the targeted event in various ways. This not only helps eliminate identified problems but also aids in preventing the threat scenario itself. Addressing one researcher's report can thus eliminate multiple potential vulnerabilities, especially with the rising Web 3.0 ecosystems.

Implementing Bug Bounty Programs

As mentioned earlier, a company must have a vulnerability management process in place before launching a Bug Bounty program. It is recommended to start with a private program, inviting a limited number of researchers to participate. While this stage may not yield significant results in finding vulnerabilities, it helps prepare and integrate the process of handling Bug Bounty reports into the company's existing vulnerability management procedures.

The Bug Bounty Reporting Process

Here is how it works: The Bug Bounty platform initially reviews the report and, if it is valid, forwards the information to your team. They analyze the report, take necessary actions according to established procedures, and ensure the complete resolution of the identified vulnerability from the moment the information is received until the required update is released. Using resource management software can help avoid wasting resources and creating parallel processes. Essentially, Bug Bounty does not introduce anything radically new. It simply adds another source of information about vulnerabilities to your existing methods.

The internal security team validates reports and checks the relevance of the detected vulnerabilities. The second part involves communicating with the researcher who has identified the vulnerability and expects a reward. Sometimes, challenges arise when a vulnerability is found to be invalid or a duplicate, leading the organization to reject the report. It is important to address the objections of the white hat hacker properly. If you reject a vulnerability, you need to clearly and correctly explain the reasons for the refusal while ensuring the researcher does not go with a negative impression.

Interaction With Researchers and Reward Assignment

Your interactions with researchers typically occur directly on the Bug Bounty platform. After the initial processing of the report and forwarding it to you, you can verify all the information provided and ask for any necessary details. Throughout the process of working with the report, you can leave comments and engage in a dialogue with the researcher.

After your security department has processed the report, the payment assignment group steps in. This group collectively reviews the researcher's report along with the feedback from specific experts. Based on this information, they decide on the amount of the reward, ensuring that no subjective factors influence the decision. In case of conflicts, it is best to try resolving them internally first. For more challenging cases, arbitrators from the Bug Bounty platform can be involved. These arbitrators aim to remain as objective as possible, as they are invested in the reputation and success of their platform and the Bug Bounty movement as a whole.

Importance of Secure Software Development Lifecycle

If a company lacks SSDLC (Secure Software Development Life Cycle) processes and releases the product directly on a Bug Bounty platform, there is a risk that bug hunters will discover numerous vulnerabilities. This could overwhelm the development team and significantly impact the product's budget due to the payments to security researchers. Such a situation would undoubtedly affect the refinement of existing functionality, delay the roadmap for new versions, and overall, feel like "shooting yourself in the foot."

In this case, the Bug Bounty program will not be effective. The secure software development lifecycle is not just about building processes but also about introducing software tools, such as static and dynamic code scanners, which help identify vulnerabilities early in development. As practice shows, fixing a vulnerability after release is much more expensive.