Bug bounty policies are fascinating because they combine cybersecurity with practical economics. Companies offer these programs to pay ethical hackers for finding weaknesses in their systems, which helps improve security while saving money compared to the cost of a major breach. The article’s literature review explains how these programs are built on the cost-benefit principle, showing that paying for vulnerabilities can prevent bigger losses later. It also highlights the role of “white hat” hackers in identifying risks.

The findings suggest bug bounties are effective because they tap into a global talent pool, making it cheaper and faster to secure systems. However, they can also attract hackers who might exploit loopholes for personal gain, so clear rules and enforcement are crucial. Overall, bug bounty policies are a clever way to improve cybersecurity by using both economic and social principles