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Microsoft Bug Bounty: $17M Rewards Paid to Hackers

by Sophie Lin - Technology Editor

The $17 Million Question: Microsoft’s Bug Bounty Program Signals a New Era of Proactive Cybersecurity

A staggering $17 million. That’s how much Microsoft paid security researchers in the last year alone for uncovering vulnerabilities in its vast ecosystem. This record payout isn’t just a number; it’s a clear signal that the battle for cybersecurity is intensifying, and the front lines are increasingly reliant on the ingenuity of independent researchers – especially when it comes to the rapidly evolving threat landscape surrounding artificial intelligence.

The Rise of the Ethical Hacker & Microsoft’s Expanding Bounty Net

Between July 2024 and June 2025, Microsoft received 1,469 valid vulnerability reports, leading to the resolution of over 1,000 security issues across products like Azure, Microsoft 365, Windows, and even Xbox. The program’s success hinges on a simple principle: incentivize those who find weaknesses before malicious actors do. This proactive approach, known as Coordinated Vulnerability Disclosure, is becoming increasingly vital as attack surfaces expand.

Microsoft isn’t just increasing payouts; they’re strategically expanding the scope of their **bug bounty program**. Recent updates demonstrate a clear focus on emerging technologies. The Copilot AI program now includes traditional online service vulnerabilities, reflecting the integration of AI into everyday applications. Similarly, new AI categories have been added to the Dynamics 365 and Power Platform programs, and increased rewards are available for flaws in these areas. This isn’t accidental; it’s a direct response to the unique security challenges posed by AI.

AI Security: The New Frontier for Bug Bounties

The increased emphasis on AI security is particularly noteworthy. AI systems, while powerful, are susceptible to novel attack vectors like data poisoning, model evasion, and adversarial attacks. These aren’t the traditional vulnerabilities that most security researchers are trained to find. Microsoft’s higher payouts for Copilot flaws – including moderate-severity issues – are designed to attract specialized talent and encourage research in this critical area. The company’s upcoming Zero Day Quest hacking contest, offering up to $5 million in awards, further underscores this commitment.

Beyond AI: Strengthening Core Infrastructure

While AI is a major focus, Microsoft isn’t neglecting the fundamentals. Increased rewards for .NET and ASP.NET Core vulnerabilities, along with additions to the Windows program covering denial-of-service and sandbox escape scenarios, demonstrate a continued dedication to hardening core infrastructure. The expansion of the Identity bounty program, covering more APIs and domains, is crucial in a world where compromised credentials remain a primary attack vector. The inclusion of Microsoft Defender for Identity (MDI), Microsoft Defender for Office (MDO), and Microsoft Defender for Cloud Applications (MDA) within the Defender program’s scope shows a commitment to securing the entire security stack.

The Perfect Heist & the Growing Threat to Password Stores

The need for robust security measures is amplified by the evolving tactics of attackers. Recent reports indicate a 3X surge in malware targeting password stores, enabling “Perfect Heist” scenarios where attackers infiltrate and exploit critical systems with devastating consequences. This highlights the importance of not only identifying vulnerabilities but also understanding the techniques attackers are using to exploit them. Understanding the MITRE ATT&CK framework and the most common techniques used in attacks is crucial for effective defense.

Looking Ahead: A Future of Collaborative Security

Microsoft’s investment in bug bounties isn’t just about fixing vulnerabilities; it’s about building a more resilient security ecosystem. By fostering collaboration with independent researchers, Microsoft is tapping into a diverse pool of expertise and accelerating the pace of innovation in cybersecurity. This model is likely to become increasingly prevalent as organizations grapple with the growing complexity and sophistication of cyber threats. The future of security isn’t just about building better defenses; it’s about proactively seeking out weaknesses and addressing them before they can be exploited. What new strategies will emerge as AI-powered attacks become more commonplace? Share your thoughts in the comments below!

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