Bug Bounty Markets: Industry Self-regulatory Efforts
This lesson focuses on the concept of bug bounty programs and the different markets that exist for the disclosure of software vulnerabilities, including how such vulnerabilities are discovered, disclosed, and monetized. It also highlights the complexities involved in dealing with zero-day exploits and the development of organized programs aimed at mitigating software vulnerabilities.
1. Zero-Day Exploits (ZDEs):
• A zero-day exploit refers to a software vulnerability that is unknown to the vendor or the public until it is exploited. There are zero days between the time of the attack and when the software vendors or system operators become aware of the vulnerability.
• Zero-day exploits are undetectable by most security technologies, such as anti-virus or intrusion detection systems, making them valuable tools for attackers.
2. Vulnerability Disclosure Options:
• When someone discovers a vulnerability, they have three main options for disclosing it:
1. Full Disclosure: Publicly releasing information about the vulnerability, forcing vendors to rush to release a patch while criminals may exploit it during this window.
2. Responsible Disclosure: Informing the vendor confidentially, allowing time for them to patch the vulnerability before it is publicly disclosed.
3. Bug Bounty Programs: Organized programs where vendors reward researchers for reporting vulnerabilities, creating a structured market for vulnerability disclosure.
3. Early Vulnerability Markets:
• Prior to formal bug bounty programs, two economic systems governed vulnerability disclosure:
1. Gift Economy: Researchers would disclose vulnerabilities for free at security conferences in exchange for reputation and social capital.
2. Barter Economy: Some individuals traded vulnerabilities within underground networks, using them to build personal toolkits for malicious activities.
4. No More Free Bugs Campaign (2009):
• In 2009, three prominent security researchers — Charlie Miller, Alex Sotirov, and Dino Dai Zovi — launched the No More Free Bugs campaign. They advocated for paying researchers for their vulnerability discoveries, signaling a shift from the gift economy to a market-based approach.
• The campaign argued that since vulnerabilities are valuable, vendors should compensate researchers who provide them with this information, rather than relying on free disclosures.
5. Challenges of a Vulnerability Market:
• Establishing a smooth, functioning market for vulnerabilities posed several challenges:
• Information Disclosure: To assess the value of a zero-day exploit, some information must be disclosed, but this risks the potential buyer knowing enough to solve the problem without payment.
• Time Sensitivity: Vulnerabilities lose value over time as others may independently discover or the vendor may patch the vulnerability.
• Legal Risks: Sellers of vulnerabilities could face legal action from vendors, who might see the transaction as extortion.
• Buyer Trust: It’s difficult to know if the buyer is a legitimate vendor or a criminal who intends to use the vulnerability for malicious purposes.
• Exclusive Rights: Even after a vulnerability is sold, the developer retains knowledge of it, making it difficult to ensure the buyer has exclusive rights.
6. Evolution of Bug Bounty Programs:
• Despite these challenges, organized markets for vulnerability disclosure have become more accepted over the past decade. These include:
• White Markets: Legitimate programs run by major software vendors (e.g., Microsoft, Facebook) that incentivize researchers to report vulnerabilities.
• Gray Markets: Involving private-sector clients, governments, and brokers who resell vulnerabilities. Brokers serve as third-party validators, running technical tests and facilitating transactions.
• Black Markets: Where criminals or nation-states purchase zero-day exploits for offensive purposes.
7. Examples of Bug Bounty Programs:
• Microsoft Bug Bounty Program: Launched in 2013, Microsoft’s program aimed to reduce the value of vulnerabilities in the black market by paying for them. Microsoft’s rules include submission in a specific format (Coordinated Vulnerability Disclosure), non-disclosure of vulnerabilities before they are patched, and a first come, first served policy for multiple submissions of the same vulnerability.
• Facebook Bug Bounty Program: Facebook started its program in 2011, later extending it to include its internal infrastructure. The program explicitly excludes certain types of vulnerabilities (e.g., spam, social engineering, denial of service attacks). Researchers are rewarded for valid submissions with both monetary compensation and reputation building.
8. Importance of Disclosure:
• The discovery of a zero-day exploit places the researcher in a unique position, where they could act as both a white hat (ethical hacker) or a black hat (malicious hacker). Bug bounty programs create an organized pathway for researchers to disclose vulnerabilities responsibly while receiving compensation.
• Bug bounty programs aim to balance the risks of legal prosecution and extortion while encouraging ethical disclosure, benefiting both software vendors and security researchers.
Conclusion:
This lesson illustrates the complexities surrounding vulnerability disclosure, particularly with zero-day exploits. Bug bounty programs have emerged as a solution to these challenges by creating a structured marketplace that rewards ethical behavior and responsible disclosure. The rise of these programs represents a shift from the early gift economy of vulnerability sharing to a market-driven approach, helping to enhance the overall security of software systems while providing incentives for researchers.
