The Dark Side of Bug Bounty: From Rewards to Punishment

BUG BOUNTY FRAUD : The Dark Side of Bug Bounty: From Rewards to Punishment

Bug bounty programs were once a golden opportunity for security researchers. Ethical hackers could help companies fix vulnerabilities while earning well-deserved monetary rewards. But lately, the industry has taken a dark turn. Instead of encouraging security research, companies are now blocking researchers, rejecting valid reports, and avoiding payouts.

How Companies Are Killing Bug Bounties

1. Rejecting Reports with Excuses

Even critical vulnerabilities are now labeled as:

"Out of Scope" – Suddenly, major flaws are deemed irrelevant.

"Not a Security Issue" – Even if an exploit is possible, they deny its impact.

"Duplicate Reports" – Without proof, they claim someone else found it first.

2. Silent Patching & Avoiding Payment

Some companies quietly fix the vulnerability without telling you, then reject your report. This avoids both an acknowledgment and a bounty payout. They want the free security audit but not to pay for it.

3. Blocking & Punishing Researchers

Many researchers have reported being banned, blocked, or restricted after submitting valid reports. Companies are now going paranoid, treating ethical hackers like threats instead of allies. They block VPNs, networks, and even entire devices from testing their platforms.

4. No More Monetary Rewards

Once generous programs are now removing cash rewards, replacing them with just a "thank you" in their Hall of Fame. Researchers are expected to spend hours finding bugs for free while billion-dollar corporations refuse to compensate them.

Bug Bounties Are Becoming a Trap

Bug bounty programs once promised a fair exchange: security research for proper rewards. But now, they’re turning into a one-sided deal where companies take everything and give nothing back.

If this trend continues, security researchers will stop reporting bugs—and companies will be the real losers when hackers exploit these flaws instead.

It’s time for companies to stop treating ethical hackers as enemies and start rewarding them fairly before it’s too late.