Bug bounty programs: Why companies need them now more than ever – Source: www.csoonline.com

In the fast-evolving landscape of cybersecurity, the need for proactive measures has become more pressing than ever.

When I first entered the cybersecurity field, the primary threats were largely opportunistic hackers exploiting known vulnerabilities and multi-million-dollar ransoms were unheard of. Today, the stakes are significantly higher. According to Cybersecurity Ventures, cybercrime is expected to cost the world $10.5 trillion annually by 2025 – an astronomical increase from $3 trillion in 2015.

This rapid escalation underscores a critical truth: companies must shift from reactive to proactive cybersecurity strategies. But this is easier said than done, and there is no single tool or system to ensure that your organization stays one step ahead of the hackers. We must evolve and adapt as hackers do – with comprehensive efforts to always look around corners and anticipate what is next. A comprehensive cybersecurity strategy requires a very thorough and complex approach, but foundational key components which companies often overlook are ethical hacking and bug bounty programs.

The strategic imperative of bug bounty programs

Reflecting on my experience as Chief Information Security Officer at Crypto.com – one of the world’s largest crypto platforms – I have seen firsthand how bug bounty programs can transform a company’s security posture. These programs – which invite ethical hackers to uncover and report potential security vulnerabilities – are not just a checkbox in a security policy; they are a strategic imperative. In an era where cyber-attacks are not only frequent but increasingly sophisticated, relying solely on internal teams to find every vulnerability is unrealistic.

Ethical hackers – or ‘white hats’ – bring a fresh perspective. They challenge systems in ways that even the most seasoned internal security team might overlook. When we first launched our bug bounty program, I was struck by the breadth of insights these hackers provided – insights that fundamentally strengthened our defenses.

Those not in cybersecurity operations may fail to realize the complexities of a cyber-professional’s day job and be quick to blame assumed failures when there are breaches. The reality is that organizations have conflicting priorities, limited budgets, legacy systems, and need time to frequently test and patch a myriad of different systems – among other challenges. This – coupled with a known global cybersecurity talent shortage of nearly four million workers, as reported by the World Economic Forum – shows why bug bounty programs should be an essential extension of your security organization.

Case study: Lessons from the crypto industry

At Crypto.com, we have taken these lessons to heart – and building on our almost decade-long relationship with HackerOne, we recently launched a USD2 million bug bounty program – the largest ever on HackerOne’s platform. This initiative is more than just a financial commitment; it is a signal to the global hacking community that we value their contributions and are serious about security. By setting such a high benchmark, we aim to attract top talent to help us stay ahead of the curve.

These lessons have helped us to become one of the top HackerOne programs globally, meeting HackerOne’s Gold Standard and having a Top Response Efficiency recognition. Our program boasts more than 300 unique hackers, a 24-hour average triage time, and has achieved a perfect hacker feedback satisfaction score of 100%.

What constitutes a best-in-class bug bounty program

While not all organizations are able to post million-dollar bounties, the financial incentive is just one aspect and ethical hackers often gravitate towards organizations that they have a strong rapport with. Based on our experience and observations, a successful bug bounty program hinges on several key pillars:

1. Clear and concise scope definitions: When we first rolled out our program, we spent considerable time defining the scope. Clear boundaries not only focus the efforts of ethical hackers but also ensure that all parties are aligned on what constitutes a valid vulnerability. Don’t present or frame it vaguely and hope for the best; be clear and concise.

2. Fair and transparent reward structures: A program’s success is closely tied to its reward system. Ethical hackers invest significant time and expertise, and it is crucial that they feel their efforts are valued. At Crypto.com, we have made our reward structure both competitive and transparent, with an easy-to-comprehend tiered system, ensuring that ethical hackers are incentivized to contribute their best work. Get creative! Ethical hackers are ‘techies’ at heart, so they appreciate some good quality branded swag every now and then, as a token of appreciation. Make them feel part of your company’s extended family as they should be.

3. Prompt and respectful communication: As with any relationship, communication is key. In one memorable instance, an ethical hacker uncovered a potential exploit while our internal teams were still testing. We immediately engaged with the ethical hacker, acknowledging their findings and providing feedback on our remediation steps, where they subsequently validated to close the loop. This prompt and respectful communication not only resolved the issue but also reinforced a positive relationship with the hacker, and our turnaround time showed our level of commitment to security.

4. Continuous improvement: Cyber threats are not static, and neither should be your bug bounty program. We regularly review and update our program to address emerging threats and incorporate feedback from the hacker community. This approach ensures that our defenses evolve in step with the threat landscape.

5. Internal ethical hacking team: Having your own internal team is critical to help bridge the gap with the technical teams to implement the fixes. If you do not have people who can liaise and speak the same technical security language as the ethical hackers, then much time could be wasted and misunderstandings could lead to incorrect implementation of the fixes. This could result in the issue not being fixed, or even worse, open the door to other vulnerabilities.

Following these principles has helped guide the creation of our most effective bug bounty program, both from my professional experience as well as observing and learning best practices from other leaders across a variety of industries.

Insights into the world of ethical hacking

Ethical hacking is as much an art as it is a science. It requires the ability to think like a malicious actor while maintaining the integrity and ethical standards of the profession. I often recall a time when an ethical hacker, through fuzz testing, uncovered a business-logic vulnerability that had eluded us during our testing phase. The lesson here is clear: the value of ethical hacking lies in its ability to probe the unknown, to explore the ‘what ifs’ that internal teams might miss. Our own Zero-Day bug bounty findings reported to some of the largest companies in the world resulted in first-hand intimate exposure of the amount of effort which goes into uncovering sophisticated and complex security bugs and the amount of security research and experimenting required is often underappreciated.

Equally important is the respect we need to show to the ethical hacking community. I have always believed that respecting ethical hackers and valuing their contributions are key to a successful bug bounty program. This respect fosters a positive, collaborative relationship that benefits both the company and the broader cybersecurity ecosystem.

Final thoughts

In conclusion, ethical hacking and bug bounty programs are not just tools – they are essential components of a robust expansive cybersecurity strategy. Companies must leverage these programs, ensuring they are well-structured, fair, and continuously improved. By doing so, they will not only enhance their security posture but also build a strong, respectful relationship with the ethical hacking community; effectively expanding your cybersecurity team. The time to invest in these programs is now, as the future of cybersecurity will depend on our collective ability (both internally and externally) to innovate and adapt.