Hi G33Ks

@forbes.com

For years, Microsoft has refused to offer financial rewards to
researchers who tell the company about security flaws in its software,
even as Google GOOG -0.49% and Facebook FB +2.64%have ratcheted up
their so-called “bug bounty” programs. Now the software giant has
suddenly changed its mind–and it’s even offering even bigger bounties
in some cases than those competitors.

On Tuesday Microsoft announced that it’s now willing to pay up to
$100,000 for information about security bugs that can be used to
bypass the defenses of Windows, starting with the upcoming preview
version of Windows 8.1 to be released later this month. For
researchers who also detail new defensive techniques for preventing
similar bugs from being exploited in the future, Microsoft will pitch
in an extra $50,000 “Defense Bonus” per submission.

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“These are super challenging to discover and they require a new
technique,” says Mike Reavey, director of Microsoft’s Security
Response Center. “So to get people thinking in this area really does
require a top-dollar reward.”

Aside from those $100,000 and $50,000 bounties, Microsoft will also
pay up to $11,000 for exploits affecting the preview version of
Internet Explorer 11, a strategy designed to fix the software’s bugs
before it’s widely released to users. “[Most organization] don’t offer
bounties for software in beta, so some researchers would hold onto
vulnerabilities until the code is released to manufacturing,” reads a
blog post about the bug bounty program from Microsoft’s senior
security strategist Katie Moussouris. “Learning about these
vulnerabilities earlier is always better for us and for our customers.

Microsoft’s payouts compare to just $20,000 offered by Google for bugs
in its Web applications, though the search firm did briefly offer
$150,000 for a bug in its Chrome operating system in a competition in
January and $60,000 for bugs in its Chrome browser the year before.
Mozilla offers up to $3,000 for bugs in its software. Facebook pays a
minimum of $500 but doesn’t specify its maximum reward.

Since Bill Gates‘ Trustworthy Computing memo in 2002, Microsoft has
created a reputation for working closely with the security research
community, hiring hackers and hosting the Blue Hat security
conferences in Redmond.  At the Black Hat conference last year it
awarded the first Blue Hat prize for researchers who develop defensive
techniques against exploits, totally $260,000 in rewards.

So why only start paying bounties for bugs in its software now?
Microsoft’s Reavey says that the company has been receiving a growing
stream of reports through third-party bug buying programs like the
HP-owned Zero Day Initiative and Verisign’s iDefense, which pay up to
$10,000 for bugs and report them the software’s vendor. It also saw
the impact of events like the annual Pwn2Own competition, where
hackers are sometimes paid six-figure rewards for developing advanced
exploits against Microsoft products and then revealing their
techniques. “We find out about [these advanced exploits] once a year
through these events, or unfortunately,  in the wild,” says Reavey.
“We want o get them year round as early and often as possible.”

Part of the incentive for Microsoft’s program may also be the growing
bounty for exploit techniques among a different community: Government
and black market buyers who plan to use them for espionage or for
crime. According to interviews I conducted in March of last year, a
working exploit affecting Windows could earn a hacker between $60,000
and $120,000 dollars from an intelligence or law enforcement agency,
and one that achieves full compromise of a Windows computer through
Internet Explorer could earn as much as $200,000.

In her blog post, Moussouris alluded to those less-friendly
bug-sellers, arguing that Microsoft’s program aims to give them an
equally lucrative alternative, and that its “Defense Bonus” may also
make their offensive hacking more difficult. “With the strategic
bounty programs announced today and the industry collaboration program
enhancements to come, Microsoft will simultaneously encourage those
who want to work with us while increasing costs for those whose
actions cannot be affected by bounties or other incentive programs.”

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