HACKER-POWERED SECURITY REPORT

H AC K E R O N E H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017
Executive Summary
Hacker-Powered Security: a report drawn from 800+ programs
and nearly 50,000 resolved security vulnerabilities.
Bug bounty and hacker-powered security programs are becoming
the norm, used by organizations as diverse as Facebook and the U.S.
government. Forty-one percent of bug bounty programs were from
industries other than technology in 2016. Top companies are rewarding
hackers up to $900,000 a year in bounties and bounty rewards on
average have increased 16 percent for critical issues since 2015. Despite
bug bounty program adoption and increased reward competitiveness,
vulnerability disclosure programs still lag behind. Ninety-four percent of
the Forbes Global 2000 companies do not have policies.
It’s time to give security teams the tools they need to keep up with ever-
faster development. This report examines the broadest platform data set
available and explains why organizations like General Motors, Starbucks,
Uber, the U.S. Department of Defense, Lufthansa, and Nintendo have
embraced continuous, hacker-powered security.
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H AC K E R O N E H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017 3

Contents
Executive Summary.................................................................................................2
Introduction...............................................................................................................5
What is hacker-powered security?....................................................................6
Key Findings...............................................................................................................7
Bug Bounty Program Growth by Industry........................................................8
Vulnerabilities by Industry....................................................................................9
Time to Resolution.................................................................................................11
Bounties by Severity............................................................................................ 13
Bounty Trends.........................................................................................................14
Hackers Donating Bounties to Charity..........................................................16
Bounties by Geography........................................................................................17
Public vs. Private Bug Bounty Programs........................................................ 18
Market Leaders Embrace Vulnerability Disclosure Policies.................... 19
Vulnerability Disclosure Policy Statistics..................................................... 20
Federal Agencies Recommend VDPs.............................................................. 21
Companies’ Perceptions of Hacker-Powered Programs......................... 22
Who are Hackers and Why Do They Hack?.................................................... 23
Comparing Customer and Hacker Surveys.................................................. 26
Safer Products, Thanks to Hackers................................................................. 27
Methodology and Sources.................................................................................. 28

Introduction
Security experts are in high demand as hundreds of millions of lines of new code are deployed
each day. Hacker-powered security provides a way to identify high-value vulnerabilities faster,
leveraging the creativity of the world’s largest ethical hacker community.
Our data reveals that adoption of bug bounty programs has moved
beyond the technology industry. Governments, multinational financial
services, media and entertainment organizations, and global retail
providers are partnering with hackers worldwide to help protect their
digital assets.
The earliest recorded bug bounty program dates back to 1983 with
Hunter & Ready, Inc.’s “Get a bug if you find a bug” campaign. This
model was later reintroduced by Netscape in 1995 and perfected by
Microsoft, Google, Facebook, and Mozilla. Today, software is at the
center of virtually every industry and societal function. Criminals are
getting better at exploiting vulnerabilities, harming consumers and
industry trust, and costing hundreds of millions of dollars in damage.
In mid-May 2017, the massive WannaCry ransome attack affected
hundreds of organizations worldwide, including the United Kingdom’s
National Health Service and Spain’s Telefonica. The estimated cost
from computer downtime from the attack: over $8 billion. In 2016, the
average cost of a data breach exceeded $4 million, and almost half of all
breaches were caused by malicious or criminal attacks, according to the
Ponemon Institute.
Hacker-powered security has proven to be an essential safeguard
against criminal attacks.
The first “bug” bounty program that paved the way for today’s
industry dates back to 1983 from operating system company
Hunter & Ready, Inc.
5
“We know for a fact that
sending a wide variety
of hackers into a wide
environment wil result in
something meaningful. It
is a fact. We cannot hire
every amazing hacker
and have them come
work for us, but we can
do these crowdsourced
bug bounties.”
- Chris Lynch, Director, U.S.
Department of Defense,
Defense Digital Services

H AC K E R O N E
HACKER-POWERED PROGRAMS DEFINED
Vulnerability Disclosure Policy (VDP):
an organization’s formalized method for receiving
vulnerability submissions from the outside world. This
often takes the form of a “security@” email address.
The practice is defined in ISO standard 29147.
Bug bounty program:
an open program any hackers can participate
in for a chance at a bounty reward.
Private bug bounty program:
a limited access program that select hackers are
invited to participate in for a chance at a bounty
reward.
Time-bound bug bounty:
a program with a limited time frame. In most cases
hackers will register or be invited.
H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017 6
Whatishacker-poweredsecurity?
Hacker-powered security is any technique that utilizes the power of the
external hacker community to find unknown security vulnerabilities in
technology. Common examples include private bug bounty programs,
public bug bounty programs, time-bound bug bounty programs and
vulnerability disclosure policies. With hacker-powered security testing,
organizations can identify high-value bugs faster with help from the
results-driven ethical hacker community.

H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017H AC K E R O N E 7
Key Findings
This report examines the largest dataset of more than 800 hacker-powered security programs,
as well as surveyed responses from individuals managing these hacker-powered programs and
the hackers who participate. The report also analyzed vulnerability disclosure data from the
world’s 2,000 biggest publicly traded companies according to Forbes.
1. Bug bounties aren’t just for technology companies. While over half of bug bounty programs
launched in 2016 are for technology companies, 41 percent are from other industries.
Governments, media and entertainment, financial services and banking, and ecommerce and
retail industries all showed significant growth year over year.
2. Customers security response efficiency is improving. The average time to first response
for security issues was 6 days in 2017, compared to 7 days in 2016. Ecommerce and retail
organizations fixed security issues in four weeks, the fastest on average.
3. Responsive programs attract top hackers. Programs that are the fastest at acknowledging,
validating, and resolving submitted vulnerabilities are the most attractive to hackers. Loyalty
matters — repeat hackers are to thank for the majority of valid reports.
4. Bounty payments are increasing. The average bounty paid to hackers for a critical
vulnerability was $1,923 in 2017, compared to $1,624 in 2015 — an increase of 16 percent.
The top performing bug bounty programs award hackers an average of $50,000 a month, with
some paying nearly $900,000 a year.
5. Vulnerability disclosure policies. Despite increased bug bounty program adoption and
recommendations from federal agencies, 94 percent of the top publicly-traded companies
still do not have known vulnerability disclosure policies — unchanged from 2015.
6. Security vulnerabilities worry companies the most. Seventy-three percent of surveyed
customers said they are concerned about unknown security vulnerabilities being exploited,
while 52 percent said they also fear customer data and intellectual property theft.

2014 - 2015 2015 - 2016 2016 - 2017
7 2 %
0 %
9 %
4 %
1 0 %
0 %
2 %
2 %
2 %
0 %
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0 %
6 1 %
0 %
1 0 %
6 %
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2 %
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1 %
2 %
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1 %
0 %
5 9 %
9 %
1 0 %
6 %
1 0 %
3 %
3 %
2 %
2 %
1 %
1 %
1 %
2 %
Bug Bounty Program
Growth by Industry
Forty-one percent of new bug bounty programs launched between
January 2016 to 2017 came from industries beyond technology. Within
technology there was an increase in the number of Internet of Things (IoT)
and smart home programs launched, as well as open-source projects.
While technology companies still represent the majority (59%), growing
verticals include financial services and banking (10% of new programs),
followed by media and entertainment (10%) retail and ecommerce (6%),
and travel and hospitality (3%).
In April 2016, the first bug bounty program in the history of the U.S.
federal government launched with the Department of Defense’s Hack
the Pentagon followed by the U.S. Army, U.S. Air Force, GSA’s Technology
Transformation Service, and the Internal Revenue Service. In late May 2017,
U.S. Senators introduced a bill to establish a federal bug bounty program
in the Department of Homeland Security. The U.K. government also
announced a vulnerability disclosure policy pilot. These actions suggest
that hacker-powered programs are increasingly viewed as vital for
securing digital assets for the public sector.
With 76 percent, ecommerce and retail had the most significant adoption
rates year-over-year. Gaming came in second with 75 percent. This was
measured as overall growth in hacker-powered security adoption from
January 1, 2016 to May 31, 2017.
There has been a 46 percent increase year over year in publicly
disclosed vulnerability reports. These disclosed vulnerability reports in
many cases are available in their entirety for anyone to learn from.
Figure 1: Industries that launched programs from the overall share of
programs, year over year.

Through May 2017, nearly 50,000 security
vulnerabilities were resolved by customers on
HackerOne, over 20,000 in 2016 alone.
In all industries except for financial services and
banking, cross-site scripting (XSS, CWE-79) was
the most common vulnerability type discovered by
hackers using the HackerOne platform. For financial
services and banking, the most common vulnerability
was improper authentication (CWE-287). Healthcare
programs have a notably high percentage of SQL
injection vulnerabilities (6%) compared to other
industries during this time period.
Introducing a Cross-Site Scripting (XSS) vulnerability
is easy. For example, if any user input is used and
the HTML page is not sanitized, it is likely an XSS
vulnerability. Modern browsers like Google Chrome
can also protect the end users against certain XSS
Financial services are often
targeted by criminals. In 2016
over 200 million records were
compromised in the financial
services sector — a 937 percent
increase year over year, according
to IBM X-Force® Research.
vulnerabilities. It’s also becoming more common for
application developers to use front-end frameworks,
like React, AngularJS, and Ember.js. Most of these
frameworks are safe by default when it comes to XSS
vulnerabilities, meaning as long as the framework
practices are followed, they mitigate XSS vulnerabilities.
Like all vulnerabilities, XSS issues range in severity.
A reflected XSS vulnerability on a site that doesn’t
authenticate users and/or exposes any sensitive
information would likely be low severity. An XSS issue
on a system that exposes significant confidential
information is more severe on the other hand.
Organizations working with hackers receive a range
of XSS issues including low and high severity. At
HackerOne, the severity of every security vulnerability
is measured with Common Vulnerability Scoring
System framework (CVSS) v3.0.
Vulnerability:
Weakness of software,
hardware, or online service
that can be exploited.
Vulnerabilities by Industry

10H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017H AC K E R O N E
T R A N S P O R T A T I O NT E C H N O L O G YG A M I N GM E D I A &
E N T E R T A I N M E N T
F I N A N C I A L
& B A N K I N G
H E A L T H C A R E E C O M M E R C E
& R E T A I L
T R A V E L &
H O S P I T A L I T Y
H A C K E R O N E
P L A T F O R M
C R O S S - S I T E
S C R I P T I N G ( X S S )
I M P R O P E R
A U T H E N T I C A T I O N
C R O S S - S I T E R E Q U E S T
F O R G E R Y ( C S R F )
V I O L A T I O N O F S E C U R E
D E S I G N P R I N C I P L E S
I N F O R M A T I O N
D I S C L O S U R E
D E N I A L O F S E R V I C E
O P E N R E D I R E C T
P R I V I L E G E
E S C A L A T I O N
M E M O R Y
C O R R U P T I O N
C R Y P T O G R A P H I C
I S S U E S
U I R E D R E S S I N G
( C L I C K J A C K I N G
C O M M A N D I N J E C T I O N
S Q L I N J E C T I O N
C O D E I N J E C T I O N
2 6 %
1 5 %
1 1 %
1 1 %
1 0 %
7 %
5 %
5 %
4 %
3 %
2 %
1 %
0 %
0 %
3 4 %
1 4 %
9 %
1 1 %
1 4 %
0 %
5 %
6 %
0 %
3 %
2 %
2 %
0 %
2 %
3 2 %
2 0 %
3 %
1 1 %
1 9 %
1 %
3 %
4 %
0 %
2 %
1 %
0 %
3 %
2 %
4 7 %
1 2 %
1 1 %
1 0 %
7 %
2 %
4 %
4 %
0 %
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0 %
2 %
2 %
0 %
2 6 %
1 2 %
8 %
1 0 %
1 2 %
2 %
4 %
4 %
1 %
2 %
1 %
1 %
2 %
1 %
1 9 %
2 2 %
1 0 %
1 7 %
1 4 %
2 %
5 %
3 %
0 %
3 %
2 %
2 %
2 %
0 %
3 5 %
1 6 %
8 %
1 2 %
1 2 %
0 %
4 %
3 %
0 %
1 %
2 %
2 %
2 %
2 %
2 8 %
2 3 %
5 %
1 2 %
2 3 %
2 %
5 %
5 %
1 %
3 %
0 %
0 %
3 %
1 %
3 1 %
1 8 %
1 2 %
8 %
8 . 5 %
0 %
3 %
7 %
0 %
1 %
1 %
3 %
6 %
3 %
Figure 2: Percentage of vulnerability type by industry from 2013 to May 2017.
In March 2017 HackerOne updated its vulnerability taxonomy to include the industry-standard
Common Weakness Enumeration (CWE). This taxonomy provides a much more complete and
accurate description of a reported vulnerability, using language endorsed by the security community.
VULNERABILITIES BY INDUSTRY

Time to Resolution
Seventy-seven percent of all bug bounty programs have their
first vulnerability reported in the first 24 hours. For the U.S.
Army, it only took five minutes. Once a customer has confirmed the
vulnerability is valid, they have the opportunity to reward the hacker
and fix the issue. HackerOne tracks the time to resolution for all
programs. A speedy resolution not only helps protect the organization
and its customers faster (by fixing the issue), it also helps attract
hackers to the customer’s program (by paying hackers faster).
Our data demonstrates that the top
performing programs on HackerOne
(based on the HackerOne Success Index)
attract not only more overall hackers but
more repeat hackers. Repeat hackers
are responsible for the majority of
resolved reports and bounties on the
HackerOne platform. The more time a
hacker spends looking at your software,
the more valuable the reports are likely
to be. This indicates there is significant
value in building hacker loyalty.
Based on time to resolution data in the HackerOne platform,
ecommerce and retail businesses are the fastest at resolving
vulnerabilities, taking a total of 31 days on average. Education
organizations are the next fastest, resolving vulnerabilities in 33
days on average. Certain industries resolve issues more slowly,
particularly in highly regulated areas with complex software stacks
and supply chains, such as telecommunications and government.
RESOLUTION TIME MATTERS
It is easier and less expensive to
fix vulnerabilities than to mitigate
them.
GARTNER PREDICTS
Ninety-nine percent of
vulnerabilities exploited through
2020 will continue to be known by
security and IT professionals for at
least one year.
Figure 3: Average number of days to resolution and to reward,
measured from Jan 1, 2016 to May 31, 2017.
Now that’s fast!
It took Slack’s security team just five hours from
when the report was filed to fix a cross-origin
token vulnerability reported in February 2017.

H AC K E R O N E 12H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017
Elite hacker Mark Litchfield applauds DropBox via Twitter for fast triage
and bounty payment.
A hacker participating in the U.S. Air Force bug bounty program shares
on Twitter that the response time exceeded his expectations.
Hacker @yaworsk praises a company via Twitter for fast resolutions.
Another way to measure speed is to look at how quickly industries pay
bounties once bugs or vulnerabilities are filed by hackers. Travel and
hospitality businesses pay the fastest, 18 days after the report is submitted,
on average, followed by food and beverage (19 days). Due to the unique way
government programs are structured, government organizations take the
longest to pay (61 days).
HackerOne data shows variability in which step of the process
organizations pay bounties. About one out of every five will pay when
the vulnerability is validated (18%), and half will pay when a vulnerability
is resolved (48%) , and the remainder pay on a case-by-case basis (34%).
Rewarding a hacker quickly for a severe vulnerability can be a reflection of its
priority and a signal to the researcher of its importance to the organization.

1 3H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017H AC K E R O N E
Bounties by Severity
Bug bounty programs on the HackerOne platform that reward
$15,000 on average for critical vulnerabilities are in the top 1% of
reward competitiveness. Those programs reward higher bounties
than 99 percent of the programs on HackerOne. In comparison
60% of organizations on the platform reward $1,000 on average
for critical vulnerabilities.
Bug bounty programs will pay average or below average,
bounties when they first launch. As the organization fixes more
vulnerabilities and their attack surface hardens, bounty payouts
should increase over time. In most cases, critical vulnerabilities
are harder to find in an organization that pays $30,000 on average,
than in an organization that pays $1,000 on average.
Hardening your attack surface and increasing reward
competitiveness takes time and sustained effort. For example,
Google Chrome steadily increased their top bounty from $3,000
to $100,000 over the course of more than five years. Bug bounty
programs offering bounties in the top 1 percent get there by
continuously working with hackers to improve security.
AVERAGE BOUNTY PAYOUT BY
VULNERABILITY SEVERITY
Bounties 99th
Percentile
Bounties 90th
Percentile
Bounties 80th
Percentile
Bounties 60th
Percentile
Figure 4: Bug bounty reward competitiveness for critical vulnerabilities
from January 2016 to 2017. Organizations in the 99th
percentile, rewarding
$15,000 on average, are rewarding bounties higher on average than 99
percent of the programs on HackerOne.

TOP BOUNTY AWARDS BY INDUSTRY
Figure 5: When looking at total bounty awards by industry from 2013 through May 2017, companies
from technology top the list, having awarded hackers over $9 million. Gaming is second, with
over $1.5 million, followed by ecommerce and retail, and transportation at $1 million each.
Bounty Trends
Through May 2017, organizations have
awarded hackers over $17 million in
bounties on HackerOne, and over $7
million awarded in 2016 alone.
As more organizations launch bug bounty
programs and compete for hacker talent,
payouts are on the rise. In March 2017,
Google increased their bounty award
50 percent, Microsoft doubled their top
bounty award and Intel offered $30,000 for
critical vulnerabilities. Offering competitive
bounty awards help attract top hackers.
The highest amount paid for a single
critical vulnerability on the platform was
$30,000 by a technology company — an
amount that has been awarded multiple
times. In the last year, gaming, ecommerce
and retail, and media and entertainment
programs each awarded a $20,000 bounty
to hackers for a critical vulnerability. In the
past 12 months, 88 individual bounties
were over $10,000.
ATTRACTING TOP HACKER TALENT
Companies know that paying higher bounties helps
attract and retain top hackers working on your program.
In 2016, Shopify awarded $365,000 in one day; GitHub
offered bounty “bonus rewards” of up to $12,000 for
standout bug reports, and Uber launched a loyalty program
that rewards repeat hackers with cash bonuses.

L O W 2 8 %
N O N E 4 %
M E D I U M 3 6 %H I G H 2 3 %
C R I T I C A L 9 %
TOTAL BOUNTY
PAYOUT PER INDUSTRY
Technology $9,003,004
Gaming $1,508,289
Ecommerce & Retail $1,053,631
Transportation $1,047,259
Media & Entertainment $638,830
Financial & Banking $506,176
Food & Beverage $198,437
Travel & Hospitality $189,886
Healthcare $140,345
Government $83,200
Education $68,150
Telecom $27,450
Figure 8: Total bounty payouts per specified
industries from 2013 to December 2016.
AVERAGE BOUNTY PAYOUT PER INDUSTRY
FOR CRITICAL VULNERABILITIES
Figure 7: Average bounty payouts per industry for
critical vulnerabilities from 2013 to May 2017.
Figure 6: Percentage of vulnerability type
by severity Jan 2016 to May 2017.
Bounty Trends
Looking at bounty averages by industry for critical issues, the highest average payments come
from transportation ($4,491), followed by gaming ($3,583). Through May 2017, the average bounty
for a critical issue paid to hackers on the HackerOne Platform was $1,923. For all vulnerabilities
reported of any severity, the average bounty payout was $467.
Vulnerabilities submitted by hackers are ranked either low, medium, high or critical as part of
the scoring process. Averages are from May 2016 to May 2017. HackerOne uses the Common
Vulnerability Scoring System (CVSS) 3.0 calculator to assign severity.
TOTAL BOUNTY PAYOUT
PER INDUSTRY
VULNERABILITIES BY SEVERITY

HACKERS DONATING
BOUNTIES TO CHARITY
Hackers are increasingly donating their bounties to charitable
organizations. Since 2014, hackers have donated nearly $100,000
to charities including Doctors Without Borders, UNICEF, the
Electronic Frontier Foundation, and the Freedom of the Press
Foundation. From January 1 through May 2017, hackers elected to
donate $39,450 in bounties. The best customer programs match
the donations made by the hackers.
Hacker @MalwareTechBlog found the ‘kill switch’ for WannaCry malware that stopped
it from infecting other computers. He was awarded a bounty for his contributions to
making the internet safer.
Many hackers also offer their time to directly help charitable
causes. One such group is Security Without Borders.

Figure 9: Where hackers are earning the most dollars in total
bounties, from April 2016 to April 2017. Where organizations are
paying hackers the most dollars in total, from April 2016 to April 2017.
United States of America $2,435,169 $6,945,487
India $1,814,578 $50
Australia $1,065,095 $24,801
Russia $723,778 $137,634
Sweden $633,701 $25,230
United Kingdom $539,946 $159,306
Argentina $506,672 $0
Hong Kong $415,210 $950
Germany $377,621 $116,811
Pakistan $365,885 $0
Canada $355,014 $662,915
Morocco $273,688 $0
Philippines $261,248 $3,340
Netherlands $249,256 $167,745
China $227,137 $3,340
Luxembourg $167,745 $116,765
Finland $81,034 $103,424
Japan $63,246 $28,757
Singapore $48,964 $47,761
Switzerland $23,004 $89,473
United Arab Emirates $16,560 $33,135
Mexico $2,700 $9,920
WHERE HACKERS ARE
EARNING BOUNTIES
LOCATION OF COMPANY
PAYING BOUNTIES
Bounties by Geography
HackerOne has awarded bounties in over 90 countries.

H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017H AC K E R O N E 18H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017 18
Public vs. Private Bug
Bounty Programs
Private bug bounty programs make up 88 percent of all bug bounty
programs on HackerOne and 92 percent of the bug bounty programs
launched in 2016. The majority of public bug bounty programs are from
technology (64%) followed by financial services and banking (11%) and
media and entertainment (8%). In contrast, 100 percent of programs are
private in the travel and hospitality, healthcare, insurance, aviation, and
telecommunications industries.
While public programs made up only eight percent of HackerOne bug
bounty launches in the past 12 months, public programs pay bounties and
resolve issues at four times the rate of private programs.
PUBLIC BUG BOUNTY PROGRAMS
RESOLVE 4X AS MANY VULNERABILITIES
AS PRIVATE PROGRAMS.
Figure 10: HackerOne platform signal-to-noise ratio over time.
2014 2014
(private concept did not exist)
2015 2015
2016 2016
2017
YTD
2017
YTD
PUBLIC PROGRAMS PRIVATE PROGRAMS
HackerOne has the highest published Signal-To-Noise Ratio (SNR) in
the industry. To read more, see “Improving Signal Over 10K bugs”
Clear Signal:
Vulnerability reports closed as “resolved.” This means the issue was a valid
security bug that was fixed by the vulnerability response team.
Nominal Signal:
These reports are closed and marked “informative” or duplicates of resolved
issues. While not contributing to clear signal, many of these reports were
technically accurate based on the best information available to the researcher.
Noise:
These reports are closed as “Not Applicable,” “Spam” or duplicates of these
types. This represents the noise in the signal to noise ratio.

H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017H AC K E R O N E
Market Leaders Embrace
Vulnerability Disclosure
Policies
Today, with thousands of organizations encouraging ethical hacking,
94 percent of the Forbes Global 2000 do not have known vulnerability
disclosure policies despite guidance from the United States Department
of Defense, Food and Drug Administration, National Highway Traffic
Safety Administration, National Telecommunications and Information
Administration, National Institute of Standards and Technology, and
Federal Trade Commission — to name a few. Nearly 200 organizations
rely on the HackerOne platform for their VDP, including the The U.S.
Department of Defense, LinkedIn, NewRelic and General Motors.
Given the increased concern about IoT and connected device security,
Panasonic is the only consumer electronics company with a public VDP
on the Forbes Global 2000 list. Major industry conglomerates, including
General Electric, Siemens, Honeywell International, ABB, and Philips, have
public policies. Over 50 percent of the Forbes top software/programming
companies have a VDP and in many cases offer hackers incentives with
bug bounty programs, including Microsoft, Snapchat, Adobe, Symantec,
Salesforce.com, and Intuit.
Starbucks is the only restaurant on the list with a VDP. Another major
restaurant company, McDonald’s, made the news in January 2017 due to
its lack of a clear VDP. In retail, Home Depot also does not have a policy,
even after agreeing to a $25 million settlement for its 2014 security
breach that impacted 50 million customers.
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H AC K E R O N E 2 0H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017
Vulnerability Disclosure Policy Statistics
Based on the 2017 Forbes Global 2000 list of the largest publicly traded companies in the world, our research
team searched the Internet looking for ways a friendly hacker could contact a company to disclose a vulnerability.
94%
8%
54%
9%
15%
10%
14%
of the Forbes Global 2000 do not have known
vulnerability disclosure policies.
Five of 36 conglomerates have vulnerability
disclosure programs, including General Electric,
Siemens, Honeywell International, ABB, and
Philips.
Two out of 24 airlines, United Airlines and
Lufthansa, have vulnerability disclosure policies.
Three out of 31 auto and truck manufacturers have
policies. They are General Motors, Tesla and Fiat
Chrysler Automobiles.
of the top software/programming companies,
54% have programs: Microsoft, Oracle,
SAP, VMware, Adobe Systems, Symantec,
Salesforce.com, and Intuit (13 of 24).
Starbucks is the only restaurant on the list with a
vulnerability disclosure or bug bounty program.
Three out of 20 consumer financial services,
including Visa, MasterCard and PayPal have
programs.
Six out 64 Major Banks have vulnerability
disclosure policies: only JPMorgan Chase,
Citigroup, ING Group, Danske Bank,
Swedbank, and Royal Bank of Scotland.
1

Federal Agencies
Recommend VDPs
A vulnerability disclosure policy (VDP) is an organization’s formalized
method for receiving vulnerability submissions from the outside world.
It instructs hackers on how to file vulnerability reports, and defines
the organization’s internal process for handling those reports. Federal
agencies and standards bodies recommend VDPs for all organizations
that take security seriously. The practice has been defined in ISO
29147. A VDP is the “if you see something, say something” for software
vulnerabilities. Before launching a bug bounty program, organizations are
advised to establish a VDP.
“Automotive industry members should consider
creating their own vulnerability reporting/
disclosure policies, or adopting policies used
in other sectors or in technical standards.
Such policies would provide any external
cybersecurity researcher with guidance on how
to disclose vulnerabilities to organizations that
manufacture and design vehicle systems.”
“(Medical device) Manufacturers should adopt a
coordinated vulnerability disclosure policy.”
“The lesson for other businesses? Have an
effective process in place to receive and address
security vulnerability reports. Consider a clearly
publicized and effective channel (for example,
a dedicated email address like security(@)
yourcompany.com) for receiving reports and
flagging them for your security staff.”
- National Highway Traffic Safety Administration (NHTSA),
“Cybersecurity Best Practices for Modern Vehicles”
- Food and Drug Administration (FDA),
“Management of Cybersecurity in Medical Devices”
-Federal Trade Commission (FTC), “Start with Security”

H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017H AC K E R O N E 2 2
Companies’ Perception of
Hacker-Powered Programs
HackerOne asked 600 of its customers about their perceptions of hackers’
value to security.
1 OUT OF EVERY 3 RESPONDENTS SAID
THEY’RE NOW BETTER EQUIPPED TO IMPROVE
THE SECURITY DEVELOPMENT LIFECYCLE.
Other beneficial business impacts cited: doing less traditional penetration
testing, and spending less money to find vulnerabilities.
#1 Security Concern: Exploited
Vulnerabilities
The most common worry is security vulnerabilities
being exploited (73%), followed by customer data
and intellectual property theft (52%), and inherited
security debt (42%). When asked about personal
security worries relating to connected devices,
respondents named identity theft (68%), access
to credit cards or bank details (64%), and access to
personal details (63%).
95% said they’d recommend hacker-powered security
to their peers at other companies. It’s efficient, it’s
cost-effective, and it gets results, they stated.
78% work with hackers to better protect their
customers while 72% say they work with hackers to
protect their technology and brand, and 57% work
with hackers because it’s a security best practice.
59% started a bug bounty program to give a boost to
internal teams, 58% run bug bounty programs to figure
out where their tech is most vulnerable, and 47% wanted
to create a structure for working with hackers.
Time-Bound Security Testing
Companies and governments are increasingly
turning to hacker-powered security to
supplement traditional penetration testing. By
setting up private, time-bound testing programs
like the HackerOne Challenge, customers can
capture the value of the hacker-powered model
in new situations, such as testing web and mobile
applications before deployment. Learn More

TIME SPENT HACKING
While most believe hackers hack for the payday, money isn’t
the only motivation. HackerOne’s 2016 Bug Bounty Hacker
Report found that motivations like enjoyment (70%), personal
challenge (66%) and doing good in the world (51%) are about
as common as the desire to make money (72%).
Regardless of their motivations, the good news for hackers is that
many of them can make a living doing what they love. Seventeen
percent said they rely solely on bug bounty programs for their
income, while 26 percent said that between 76 percent and 100
percent of their incomes comes from bug bounty programs.
As more bug bounty programs are created, more hackers of
all stripes are signing up. Over 100,000 hackers are registered
on HackerOne, and they’ve earned more than $17 million in
bounties. Hackers hail from 90 countries, with the biggest
groups coming from India and the United States.
Figure 11: Proportion of hackers by average amount of weekly time they spend hacking.
Who are Hackers and Why Do They Hack?
Hacker: one who enjoys the intellectual
challenge of creatively overcoming limitations,
also known as white hat, ethical hacker, or
security researcher.

H AC K E R O N E
WHY DO HACKERS HACK?
AGE OF A HACKER
Figure 12: What motivates hackers. HackerOne surveyed 600 hackers to better understand what
motivates them to hack. Figure 13: Over 90% of hackers are under 34
years old. For more on the hacker community,
what motivates hackers and how they hack
check out the full report: 2016 Bug Bounty
Hacker Report
5 MOTIVATIONS OF SECURITY
RESEARCHERS
While hackers have diverse
motivations, I Am The Cavalry provides
a framework to encourage discussion
and appreciation why hackers
investigate security flaws: Protect,
Puzzle, Prestige, Profit, and Politic.
Read more
H AC K E R - P O W E R E D S E C U R I T Y R E P O R T 2 017 2 4

“The thing I like most about hacking is the
challenge of trying to break into different
companies and let them know they have
vulnerabilities so they can fix them to
protect the customers.”
“Finally going to buy a flat for my mom.
Thanks HackerOne.”
“I would like to thank you for making my
dream come true. At the age of 14 I am
listed in the world’s top companies like
Twitter and other sites. This can’t be
done without HackerOne.”
“It’s all about community, isn’t it? At the
end of the day we have a laugh and poke
fun at each other on the Internet. This is
one big community. I think we all see that.
Otherwise, we wouldn’t be here doing it.”
“I have been in information security for
a long time, but I shifted myself into
bug bounties two years ago, just after I
noticed my friends posting about earning
bug bounties on Facebook.”
“Thanks to HackerOne. Because of you
guys I was able to put my kid in a very
good school.”

Comparing Customer and Hacker Surveys
From the perspective of customers that establish bug bounty programs, what do they believe
motivates hackers? How does this line up with what the hackers actually say motivates them?
57 percent of hackers say they even took part in bug bounty programs that didn’t offer bounty
payouts. For more on why hackers hack, check out the 2016 Bug Bounty Hacker Report.
Customers Think...
77% think hackers hack for financial gain
40% believe they do it for the challenge
What Hackers Actually Say...
72% hack to make money
51% hack to do good in the world

Safer Products,
Thanks to Hackers
Over 30 years after the first “bug” bounty program, relying on hackers is
a best practice, not a stealth operation. In 2016, the number of hackers
on the HackerOne platform grew nearly 300 percent, bounty payments
are on the rise, and organizations that rely on hackers are singing their
praises. Companies in all verticals have discovered that hackers can find
vulnerabilities faster and more cost effectively than internal development
teams. The rise of hacker-powered security translates to greater
confidence in product security. Here’s how HackerOne sees the future of
bug bounty programs:
For the most comprehensive guide on how plan, launch, and operate a
successful bug bounty program, check out The Bug Bounty Field Manual.
“My first thought was, ‘Wow, it only took them
10 minutes to identify a vulnerability. How long
would it have taken for us to discover?”
More industries outside technology will widely adopt
hacker-powered security. With market leaders already
running successful bug bounty programs, more companies
in more industries will look to improve their security.
Organizations will have to compete for the best hacker
talent. Bounties are rising, and companies have seen the
value of using monetary incentives, and other tools to
attract talent to their program.
As online criminals innovate, hackers will close gaps
in security. Attackers aren’t going anywhere — in fact,
they’re getting smarter. Organizations with bug bounty
programs will lead the way in identifying and fixing product
flaws before they make the news.
“The best thing we ever did for security
was start a bug bounty program.”
- Paul Nakasone, Lieutenant General, Army
Cyber Command, said of Hack the Army
- Sheryl Sandberg, Facebook COO

Methodology and Sources
Findings in this report were collected from the HackerOne platform using
HackerOne’s proprietary data based on over 800 collective bug bounty and
vulnerability disclosure programs.
Forbes Global 2000 Vulnerability Disclosure Research
Our research team searched the Internet looking for ways a friendly hacker could
contact these 2,000 companies to disclose a vulnerability. The team looked for web
pages detailing vulnerability disclosure programs as well as email addresses or any
direction that would help a researcher disclose a bug. If they could not find a way for
researchers to contact the company to disclose a potential security vulnerability,
they were classified as one that does not have a known disclosure program.
Any companies that do have programs but are not listed as having one in the
Disclosure Directory are encouraged to update their profile in the Disclosure
Directory on their company’s page. See ISO 29147 for additional guidance or
contact us.
2017 HackerOne Customer Survey: In May 2017, HackerOne surveyed 600
customers from the U.S. and EMEA who used the platform in the most recent 30
day period. Respondents came from a variety of industries, including Software/
IT/Hardware industries (53%), followed by finance and banking, retail, hospitality
and education, and others. Fifty-seven percent described the organization or
team they reported to as engineering, followed by security (24%), IT (10%), and
other. The majority of those surveyed described their titles in descending order as
managers, followed by individual contributors, director level, C-level executives and
vice president.
2016 Bug Bounty Hacker Report: The report was based on over 600 responses
to the 2016 HackerOne Community Survey, including hackers who successfully
reported one valid vulnerability, as indicated by the organization that received the
vulnerability report.
ABOUT HACKERONE:
HackerOne is the #1 bug bounty and
vulnerability disclosure platform with the
largest community of ethical hackers and the
most hacker-powered security programs.
Since our first customer joined in 2013, over
800 programs have launched on HackerOne,
collectively paying out more than $17
million in cash bounties to hackers and
security researchers. Nearly 50,000 security
vulnerabilities have been fixed and rendered
unexploitable by malicious actors. The
connected world is becoming more secure.
Contact HackerOne

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