Bug Bounty vs Penetration Test: Know the Difference

A penetration test or pen-test and a bug bounty program are both simulations of a cyberattack aimed to uncover and patch flaws in a company’s system, strengthening its security posture.

Bug Bounty and pentesting both serve the same fundamental need: testing an organization’s systems against major cyber risks and attacks. So, which one should you go with? To help you answer that question, we’ll go through the two security testing methodologies, from what they are to their duration, cost, and scope, as well as the business advantages they provide.

Differences between penetration testing and bug bounty

A penetration test is a legally simulated attack on a computer system designed to identify and remedy security holes that attackers may exploit.

Penetration testers require access to the target system and its network infrastructure in order to conduct a penetration test. They will use this access to try to exploit system flaws such as out-of-date software, weak passwords, or server/firewall misconfigurations.

Bug bounty programs are crowdsourced security testing projects in which corporations allow ethical hackers to test their systems for vulnerabilities and compensate them for any flaws discovered. Bug bounty programs differ from penetration testing in that they are not sanctioned by the business and do not require prior access to the targeted system. Instead, ethical hackers use publicly available information, such as internet directories and search engines, to test the system for vulnerabilities outside of the network.

What is the scope, duration, and cost of each method? Bug Bounty and Pentesting

The business sets the scope of a penetration test. It can be as broad or narrow as the organization needs, covering everything from external and internal networks to online applications and remote work infrastructure. Depending on the size or complexity of the systems being evaluated, penetration testing can run anywhere from a few days to several weeks. The cost of penetration testing is determined by the scope of the testing as well as the competence of the penetration testers.

The organization also determines the scope of a bug bounty program. However, bug bounty programs do not have a defined end date, unlike penetration exams. Instead, they operate indefinitely until the organization decides to discontinue the program. The cost of a bug bounty program is determined by the magnitude of the bounty incentives and the number of ethical hackers participating.

However, in terms of technique, the two approaches may differ since penetration testers often utilize a more formal and organized approach within a defined scope, whereas bug bounty programs are more informal and can respond to increasing the scope as the business expands.

What knowledge and management are necessary for each approach?

The breadth of the test determines the skill level necessary for a penetration test. For example, if a company is testing its online apps, it will want a penetration tester familiar with web application security. On the other hand, if a company is evaluating its complete network infrastructure, it will want a penetration tester with the required network security skills. The scope of the test also determines the management required for a penetration test.

Professional penetration testers, on the other hand, typically possess industry-recognized qualifications such as the Offensive Security Certified Professional (OSCP).

The necessary skill for a bug bounty program is also determined by the program’s scope, which implies that the business might choose to test simply their online apps or their complete network infrastructure. Penetration testing requires less supervision than bug bounty programs but requires some security skills to comprehend the testers’ results. On the other hand, bug bounty programs need more supervision since ethical hackers’ discoveries must be organized and confirmed.

Bug bounty “hunters” are usually not required to have any security certificates. Still, they must be highly talented hackers or developers with a thorough awareness of computer systems and security flaws.

What are the business advantages of each strategy?

The following are some of the key benefits of penetration testing:

• Reduced risk of data breaches: Penetration testing can help minimize the risk of data breaches by discovering and addressing vulnerabilities before attackers exploit them. Data breaches may be costly, not just in terms of financial losses but also in terms of reputational harm to a business.
• Improved security posture: Penetration tests can assist organizations in identifying gaps in their security controls and improving their overall security posture, specifically through vulnerability remediation and implementing new security controls and cybersecurity best practices.

Organizations that perform penetration testing demonstrate that they take cybersecurity seriously and are committed to protecting customer data. A penetration test is required if you operate an e-commerce website to verify compliance with several requirements, including the PCI-DSS payment card security standards.

The following are some of the key benefits of a Bug Bounty Program:

• Bug bounty programs enable enterprises to tap into a large pool of ethical hackers to test their systems for vulnerabilities. This is especially useful for firms with limited security resources or who wish to augment their penetration testing efforts.
• Bug bounty programs can be cost-effective because they can run continuously and only require payment when a bug is discovered. However, several factors can make their costs unpredictable, such as: For example, more discoveries leading to higher payouts or costs for internal management staffing expenses.
• Improved reputation: Bug bounty programs, like penetration testing, may help an organization’s reputation by demonstrating a commitment to security. This dedication may help attract new clients and business partners while also retaining existing ones.

Finishing up

So, which is the best option for your organization? The answer is determined by your company’s needs, goals, and resources. For example, a penetration test may be the best option if you want a full review of your system’s security. At the same time, a bug bounty program may be a better alternative if you wish to monitor your systems continually.

Furthermore, a more focused, in-depth activity, such as opponent simulations, may better fit your requirements and goals. For example, our adversary simulations simulate specific hacking situations, delivering a far more detailed and realistic picture of your day-to-day cybersecurity concerns.

If you need assistance strengthening the security of your network, please contact us.