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VDR glossary · Security

What is a bug bounty program?

Definition

Bug bounty program: A standing invitation from a software provider for independent security researchers to report vulnerabilities in exchange for recognition or payment, under published rules of engagement.

How it works in a data room

The provider publishes a policy describing which systems researchers may test, which techniques are forbidden, how to submit findings and how rewards are set. Reports arrive through a dedicated channel or a managed platform, are triaged by the provider’s security team and fixed according to severity. Many providers also publish a security.txt file and a vulnerability disclosure policy even without paying rewards. Testing is limited to test accounts, so customer rooms are never used as targets.

Why it matters in a deal

A penetration test is a snapshot taken by one firm over a few weeks. A bounty or disclosure program keeps many outside eyes on the product all year, which tends to catch issues that a single test misses. It also shows that the provider has a process for receiving bad news and acting on it. When you compare providers, ask whether a program exists, how quickly critical findings are fixed and whether summary statistics are shared under NDA.

Example

A researcher finds that a data room’s file preview leaks document titles to users who lack access to the folder. She reports it through the provider’s bounty program. The provider patches it within four days, checks its logs to confirm no customer exposure and adds the case to its next audit evidence pack. Customers asking about the incident receive a short written summary.

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