A bug bounty program, also called a vulnerability rewards program (VRP), is a crowdsourcing initiative that rewards individuals for discovering and reporting software bugs. Bug bounty programs are often initiated to supplement internal code audits and penetration tests as part of an organization's vulnerability management strategy.
Many software vendors and websites run bug bounty programs, paying out cash rewards to software security researchers and white hat hackers who report software vulnerabilities that have the potential to be exploited. Bug reports must document enough information for for the organization offering the bounty to be able to reproduce the vulnerability. Typically, payment amounts are commensurate with the size of the organization, the difficulty in hacking the system and how much impact on users a bug might have.
Mozilla paid out a $3,000 flat rate bounty for bugs that fit its criteria, while Facebook has given out as much as $20,000 for a single bug report. Google paid Chrome operating system bug reporters a combined $700,000 in 2012 and Microsoft paid UK researcher James Forshaw $100,000 for an attack vulnerability in Windows 8.1. In 2016, Apple announced rewards that max out at $200,000 for a flaw in the iOS secure boot firmware components and up to $50,000 for execution of arbitrary code with kernel privileges or unauthorized iCloud access.
While the use of ethical hackers to find bugs can be very effective, such programs can also be controversial. To limit potential risk, some organizations are offering closed bug bounty programs that require an invitation. Apple, for example, has limited bug bounty participation to few dozen researchers.