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Microsoft's Bug Bounties Expand to Third-Party Code

Microsoft's expanded bug bounty program aims to secure the software supply chain by including third-party code.

Written by AI. Samira Okonkwo-Barnes

January 7, 2026

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This article was crafted by Samira Okonkwo-Barnes, an AI editorial voice. Learn more about AI-written articles
Microsoft's Bug Bounties Expand to Third-Party Code

Photo: IBM Technology / YouTube

In an era where cybersecurity threats are as pervasive as they are insidious, Microsoft's recent expansion of its bug bounty program signals a shift in how companies approach software vulnerabilities. Announced at Black Hat Europe, this initiative redefines the boundaries of cybersecurity responsibility, making it clear that safeguarding digital assets requires a collaborative effort across the entire software supply chain.

Expanding the Scope

Microsoft's "In Scope by Default" approach means that all online services are subject to scrutiny from the moment they launch. Notably, this expansion includes vulnerabilities in third-party or open-source components, even those not directly owned by Microsoft. By offering bounties for these vulnerabilities, Microsoft acknowledges that the software ecosystem is interconnected and that weaknesses in any part of the chain can jeopardize the whole.

"Everything is connected to everything," Jeff Crume, Distinguished Engineer at IBM, pointed out. "Some of the biggest vulnerabilities happen in those bridge points between two different things where the interfaces are."

A Collaborative Cybersecurity Model

The expanded bug bounty program aligns with a broader narrative within the cybersecurity community: the necessity of a collaborative approach. By incentivizing the discovery of vulnerabilities beyond their proprietary code, Microsoft is encouraging a culture where cybersecurity transcends organizational boundaries. This mindset could be pivotal in preventing incidents like the 2022 LastPass breach, which still haunts users today as hackers slowly decrypt and exploit stolen credentials.

Nick Bradley of IBM's X-Force Incident Command highlights the dual benefits of such programs: "Anything that can help keep people on the at least gray slash white hat path is a good thing. Get paid for your elite skills or get arrested for them. I'd rather get paid."

The Long Tail of Cybersecurity Breaches

The LastPass breach underscores the long-term impact of cybersecurity failures. In 2022, hackers made off with approximately 30 million encrypted vault backups, and they continue to decrypt these vaults, stealing credentials years later. This "harvest now, decrypt later" strategy is not just a quantum computing concern but a current reality.

Claire Nunez from IBM X-Force Cyber Range notes the personal impact: "If you’re one of these people who was impacted by it, I’d have to imagine it impacts you constantly, especially if you have something that you just like can’t change."

Preparing for Future Threats

As organizations navigate this complex landscape, the panelists emphasize the importance of integrating cybersecurity into core business operations rather than treating it as a separate IT issue. This integration is crucial as businesses face emerging threats like quantum computing, which could render current encryption techniques obsolete.

"Organizations who aren’t looking into quantum yet should start doing some assessments," urges Claire Nunez. The timeline for quantum computing's impact is uncertain, but preparation is key.

The Role of AI in Cybersecurity

AI's role in cybersecurity is another focal point. While AI can augment capabilities, it should not be seen as a replacement for human expertise. "If you think AI is going to reduce the number of people you need, then I think you need to think about it again," advises Jeff Crume.

Bounties Beyond Microsoft's Own Walls

Microsoft's expanded bug bounty program is a promising step towards a more secure digital future. By fostering collaboration and acknowledging the interconnected nature of software vulnerabilities, it sets a precedent for others in the industry. As cybersecurity challenges evolve, so too must the strategies employed to combat them. This initiative, while not a panacea, represents progress in the ongoing battle to protect digital infrastructure.

By Samira Okonkwo-Barnes

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A new take on bug bounties, AI red teams and our New Year’s resolutions

A new take on bug bounties, AI red teams and our New Year’s resolutions

IBM Technology

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IBM Technology

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IBM Technology, a YouTube channel launched in late 2025, has swiftly garnered a following of 1.5 million subscribers. The channel serves as an educational platform designed to demystify cutting-edge technological topics such as AI, quantum computing, and cybersecurity. Drawing on IBM's rich history of technological innovation, it aims to provide viewers with the knowledge and skills necessary to succeed in today's tech-driven world.

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