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Groupon Refuses To Pay Security Expert Who Found Serious XSS Site Bugs

Mark Wilson writes: Bounty programs benefit everyone. Companies like Microsoft get help from security experts, customers gain improved security, and those who discover and report vulnerabilities reap the rewards financially. Or at least that's how things are supposed to work. Having reported a series of security problems to discount and deal site Groupon, security researcher Brute Logic from XSSposed.org was expecting a pay-out — but the site refuses to give up the cash. In all, Brute Logic reported more than 30 security issues with Groupon's site, but the company cites its Responsible Disclosure policy as the reason for not handing over the cash.

26 of 148 comments (clear)

  1. Sell it to black hats then... by Karmashock · · Score: 3, Insightful

    They'll pay. The companies are unforgivably stingy about paying security bounties. Obviously a good person is not going to sell it to black hats. But why would anyone investigate security in these companies without compensation guarantees or the intent to exploit them for personal profit?

    Just stop even bothering to exploit them unless you interest is to sell the information to the highest bidder.

    Help companies that want help if you're a good person and exploit stupid companies if you're a bad person.

    Next issue.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    1. Re:Sell it to black hats then... by stephanruby · · Score: 3, Informative

      They'll pay.

      It depends.

      Groupon's entire business model is based on extracting as much cash as possible from desperate businesses, even if that means those businesses go bankrupt. Groupon doesn't fear bad PR. If it was afraid of bad press, it would have folded long ago.

      Also, 32 XSS security issues seems like a pretty high number. Personally, I wouldn't be surprised if those 32 XSS vulnerabilities traced back to a single problem. That being said, I have no idea if that's the case, or not.

      Either this researcher, or Groupon, would have to tell us what those 32 XSS vulnerabilities were in the first place, for us to really understand this situation.

    2. Re:Sell it to black hats then... by mysidia · · Score: 3, Insightful

      Groupon doesn't fear bad PR. If it was afraid of bad press, it would have folded long ago.

      Possibly they don't mind bad press, but i'll bet they mind press that says their site is insecure, or that if you do businesses with them, "Your identity/credit card number might get stolen"

      That's probably why they got fussy and denied the researcher's bounty, when a note that a XSS bug (without substantive details) had been published.

      Sounds like maybe the "responsible disclosure" policy was about protecting the site's reputation, not their users' security.

    3. Re:Sell it to black hats then... by Cederic · · Score: 2

      To be fair, the report suggests they took the bug notification seriously and were discussing a patch.

      So they're trying to protect the site's reputation AND their users' security.

    4. Re:Sell it to black hats then... by stephanruby · · Score: 3, Interesting

      Groupon doesn't fear bad PR. If it was afraid of bad press, it would have folded long ago.

      Possibly they don't mind bad press, but i'll bet they mind press that says their site is insecure, or
      that if you do businesses with them, "Your identity/credit card number might get stolen"

      That's a good point.

      By the way, it was actually one single XSS flaw that was affecting 32 different web sites.

      At least, this is according to the researcher himself (either that, or he made a mistake expressing himself, because his English is obviously not too good). So if that's really the case that it was only one flaw, but on 32 sites, then I really do have no sympathy for him.

      Once a vulnerability is disclosed for one site, it's obvious that hackers are going to try to exploit the same flaw on other sites owned by that same entity And by disclosing the vulnerability of two sites, a disclosure which was not accidental at all, it's obvious that he was pissed off that Groupon wouldn't commit to any minimum amount of money for his initial disclosure .

    5. Re:Sell it to black hats then... by stephanruby · · Score: 4, Insightful

      And continuing on my initial line of thought.

      I think that Groupon should assign $500 to that one security flaw disclosed by Brute_Logic (again, it can't be 32 flaws, because it's essentially only one flaw on 32 sites owned by Groupon), and then it should give that money as a donation to the EFF (under the pseudonym Brute_Logic).

      This would send the right message to future researchers who discover future flaws, that Groupon can be fair, but that researchers need to follow protocol if they really want the money to go to them.

    6. Re:Sell it to black hats then... by Antique+Geekmeister · · Score: 3, Informative

      > Black hats are not some cartoonish sinister force

      I've worked with both white hat and black hat crackers. Most black hat crackers, by an overwhelming majority, are an _very_ cartoonish. That cartoonish and mostly incompetent majority does not pay their bills, they do not protect the confidentiality of their targets or of their colleagues, they violate their agreements, and they will attack the accounts and systems of the people who have already paid them once.

      Are there black hat crackers who keep their deals and their word? Yes, there are I can think of several I consider professional colleagues. They break laws, but they turn around and sell their services to vulnerable clients to shore up their defenses, and I applaud their work. I would expect them be willing to pay a modest sum for a zero-day exploit to add to their toolkit. But they're very much the exception. Go spend some time on the IRC chnnel "4chan" to get a much better sense of what the average black hat cracker is like.

  2. Re:Good for them by hawguy · · Score: 4, Informative

    I'm tired of these security experts holding these sites hostage. They should disclose these vulnerabilities to build a safer Internet, not to line their pockets.

    If they really wanted to line their pockets, they'd sell them to the black hats.

    Blindly disclosing the security holes to the internet at large makes the internet less safe in the short term since the bad guys can exploit the vulnerabilities before the good guys can fix them.

    Groupon could hire people themselves to find the vulnerabilities, but they chose not to, instead they offer a bounty for security bugs, which apparently is very cost effective when they don't pay up, so it's a double win - no need to pay money to hire security experts when a community of bug hunters will do the work for a token bounty, and no reason to actually pay the bounty when you can find a technicality (if one out of 30 bugs were released in violation of their guidelines, why aren't they paying their promised bounty for the others?)

  3. Don't follw the rules don't get paid. by jklovanc · · Score: 5, Informative

    Part of the requirements to be paid a bounty is following the "responsible disclosure policy". The submitter did not follow that policy and therefore did not get paid. It seems pretty simple.

    1. Re:Don't follw the rules don't get paid. by Stewie241 · · Score: 3, Informative

      Well the policy does say that they will not pay out for "Bugs that have been disclosed publicly or to third parties (brokers) by you or others"

    2. Re:Don't follw the rules don't get paid. by extranatural · · Score: 3, Insightful

      So the bottom line for you is about the letter of the law rather than the spirit of the law?

      If the 30 other bugs are forfeit because of a procedural mistake that only applied to one of the bugs, the next infosec researcher won't report 30 bugs. They will report them one at a time in an effort to maximize their rewards. The vulnerabilities will stay in the wild longer, the effectiveness of whole effort behind posting bounties is reduced.

      Hunting for bugs sometimes requires consulting with others in the infosec community. From what I understand it was a fairly minor and well intentioned slip. A technicality.

      If good intentions are met with pedantics & technicalities, I wonder how long those intentions will remain good.

  4. Editorial slant much? by Anonymous Coward · · Score: 5, Insightful

    There's a dispute between two parties. I realize "company bad!" is everyone's default, but there ARE two sides to this story, and presenting one side with a heavy editorial slant is rarely productive.

    Here are what appear to be the facts: A security researcher found several flaws on groupon.com. It's likely they were related, though how much so isn't directly stated. These flaws were reported to Groupon. At least some details related to at least some of the flaws were published online for a period of time, which may or may not be inadvertent. Groupon's stated policy is to reward researchers for reporting bugs, with a condition that the bugs are not also disclosed publicly before Groupon can address them. Groupon has declined to pay in this case because of the online posting.

    Whether this is reasonable or horrible depends on a number of factor, for which we have only one person's word. Was the publishing of details inadvertent, or deliberate? How long was the post up? Did the post describe all the flaws, or just some? How detailed was the online description? Was the post proactively taken down by the author because it was posted "in error," or was it in response to Groupon's policy? How long did Groupon have information about this vulnerability before the online disclosure? All of these would affect my belief about who's being unreasonable to whom here.

  5. Re:Good for them by mysidia · · Score: 4, Insightful

    They should disclose these vulnerabilities to build a safer Internet, not to line their pockets.

    A safer internet doesn't put food on their table.

    It's Groupon who is lining their pockets, when they could be building a safer internet by actually paying money for security. It's the reluctants of companies to take security seriously and spend time and money on it that leads to an unsafe internet.

    And then we get dumb things like this "responsible disclosure program," which is really not about protecting users, but protecting Groupon's reputation. That is to say... it's a PR-protecting policy, not a policy for protecting users' safety. The unintentional disclosure they referenced regarding ONE of the 30 vulnerabilities didn't even reveal meaningful information about the vulnerability, therefore: Groupon was not concerned about exploit details being disclosed, but ONLY the fact that there was publicity being generated that said their site was insecure.

    The researchers need the bounty proceeds to justify spending the time researching to discover them. It's the companies that are lining their pockets, by avoiding hiring people like these folks and other security professionals to do this ----- instead offering small bounties, only available if they DO discover something wrong after spending possibly thousands of hours beating around looking for something wrong.

  6. Re:Good for them by un1nsp1red · · Score: 4, Insightful

    very cost effective when they don't pay up, so it's a double win - no need to pay money to hire security experts when a community of bug hunters will do the work for a token bounty, and no reason to actually pay the bounty when you can find a technicality

    Except this only works a couple times. Who is going to spend their time on Groupon now that they know they'll weasel out of paying?

  7. Note to self ... by Anonymous Coward · · Score: 3, Insightful

    ... next time sell info to hxkers

  8. Strange response by lq_x_pl · · Score: 3, Insightful

    I understand that he broke the terms. It is absolutely valid for Groupon to refuse to pay them.
    From a 'big picture' point of view though, this was a very bad move. Security researchers are a group with whom you usually want to be on good terms. Maybe just reduce the payout over the one published exploit - but don't stiff the guy. Even if Brute Logic is a nice guy (tm) that continues to operate in a benevolent fashion, other security researchers (and their less-benevolent counterparts) may see this and decide that it is open season on Groupon.

    --
    An internal system operation returned the error "The operation completed successfully.".
    1. Re:Strange response by lq_x_pl · · Score: 2
      You're twisting my words. That's ok though, I'd expect that from AC.
      I wasn't saying that the researchers are an organized gang of cyber-thugs cruisin' the web for sploits. I was just acknowledging how humans tend to act in groups. Most people see someone acting unfairly and say, "Gee, that's not nice."
      Others, if they identify strongly with the individual they think was wronged, may take a more active role in meting out karma.

      This is particularly problematic, if you've offered a bounty for holes in your security - and then you refuse to pay someone who found holes in your security. You can't win. Folks will either stop trying to help you find holes in your security, or they'll find them and handle them in a way that is sure to be profitable.
      Don't piss of the folks you've asked to help - this applies to your dealings with waiters, plumbers, and mechanics as well.

      --
      An internal system operation returned the error "The operation completed successfully.".
  9. Re:The Real Reason by Stewie241 · · Score: 2

    I'm trying to understand the use of the word 'moments'. It seems the article, which is clearly biased in favour of the security researcher, is trying to downplay the actual event. It is hard to really grasp exactly what happened here because the amount of time that the posting was live is not specifically mentioned. Generally, I would assume moments is about 10-15 seconds or less. However the following happened in those 'moments':
      1. The issue was published
      2. Somebody realized it was published in error (there is no indication of who)
      3. Groupon somehow found out about this being posted
      4. The article was removed

    So you can give the benefit of the doubt and assume it was an accident. But as a security research you have to realize that making this sort of mistake can have serious repercussions. If Groupon somehow discovered it had been published, it isn't that unreasonable to assume that others had as well.

  10. Re:Good for them by quantaman · · Score: 4, Insightful

    I'm tired of these security experts holding these sites hostage. They should disclose these vulnerabilities to build a safer Internet, not to line their pockets.

    If they really wanted to line their pockets, they'd sell them to the black hats.

    Blindly disclosing the security holes to the internet at large makes the internet less safe in the short term since the bad guys can exploit the vulnerabilities before the good guys can fix them.

    Groupon could hire people themselves to find the vulnerabilities, but they chose not to, instead they offer a bounty for security bugs, which apparently is very cost effective when they don't pay up, so it's a double win - no need to pay money to hire security experts when a community of bug hunters will do the work for a token bounty, and no reason to actually pay the bounty when you can find a technicality (if one out of 30 bugs were released in violation of their guidelines, why aren't they paying their promised bounty for the others?)

    I'm sure they do have their own people looking for vulnerabilities, but if outsiders also find vulnerabilities they'd like to know.

    As for the non-payout I doubt Groupon's motive is financial. Far more likely they really want to discourage people from disclosing the bugs publicly before they have a chance to fix them.

    Whether Groupon is being reasonable is the question here.

    I'm personally skeptical that the expert found 32 separate issues but suspect he found 32 variations on the same issue (he says 32 sites affected, which leads me to believe this is the case). If so the description of one issue could give an attacker enough of a clue to find the other 31 issues.

    Then again it could be 32 legitimately unique issues, and the one vague disclosure might not have been enough to help an attacker. In that case Groupon should probably pay him out.

    --
    I stole this Sig
  11. Re:He screwed up. by Anonymous Coward · · Score: 2, Informative

    Yes, he did screw up: by getting things published on XSSposed.org before GroupOn fixed their issues.

  12. Re:Good for them by erice · · Score: 2

    (if one out of 30 bugs were released in violation of their guidelines, why aren't they paying their promised bounty for the others?)

    Maybe there is only one bug and the remaining 29 are just trivial exploit variations of a single error. Of course, if that were true, it would help if Groupon actually explained that rather than hiding behind generalized and opaque "policy" reasons.

  13. Re:He screwed up. by Sun · · Score: 4, Insightful

    Yes, he did screw up: by getting things published on XSSposed.org before GroupOn fixed their issues.

    You mean "thing", right? Only one, only by mistake, only for a short period of time.

    I'm with the researcher on this one.

    Shachar

  14. Re:Good for them by epyT-R · · Score: 3, Interesting

    Full disclosure also encourages the vendors to fix their shitty code asap, and encourages a preemptive security conscious culture. These are good things.

  15. Re:Good for them by niftymitch · · Score: 3, Interesting

    I'm tired of these security experts holding these sites hostage. They should disclose these vulnerabilities to build a safer Internet, not to line their pockets.

    If they really wanted to line their pockets, they'd sell them to ......

    Groupon could hire people themselves to find the vulnerabilities, but they chose not to, instead they offer a bounty for security bugs, which apparently is very cost effective when they don't pay up, so it's a double win .......

    I'm sure they do have their own people looking for vulnerabilities, but if outsiders also find vulnerabilities ....

    Interesting...
    Vulnerability testing is sometimes difficult from inside.
    Companies have security policies that could make testing by employees quite difficult.
    Testing from home is often excluded by company rules.
    Network and hardware management also adds to this issue.
    Laws are making it harder and harder for White hats to operate.

    The issue of script rich "experts" hunting bounty is interesting.
    First the bounty needs rules and pre disclosure rules need to be bounded in time.
    Fixing it when I darn well want to is not no a working answer.

    Script discovered flaws are likely industry standard flaws most with well known solutions.
    A list of script triggered flaws that is as long as this tells me that the engineering
    staff and management need to have their bonus packages reviewed. It seems
    like a flawed culture. Non payment of the bounty is a symptom if the report
    was held private for a fair length of time.

    Some companies have "sat" on bugs and faults. The most famous list of faults
    are enumerated in the security book written by Robert Morris. Almost none were fixed then
    his son coded the Morris worm. That should have been the clue to the
    industry but it was not. The response was mostly legal not technical which
    is an inversion of the needs of national security where the laws of a nation
    cannot protect from predators in other nations.

    There is an astounding cognitive failure when a nation passes laws and fails to
    to address the technical reach of those outside the reach of the law. Predator drones
    are not an answer ...

    This flawed protectionist mind set by many US TLAs is a problem.
    Other nations have the same issue and should be filing bugs with vendors
    left and right. Some nations might need a proxy for this but again
    national laws could find these people acting as agents of a foreign government
    to their loss of freedom.

    Kafka is giggling.

    --
    Truth is stranger than fiction, but it is because Fiction is obliged to stick to possibilities; Truth isn't. Mark Twain.
  16. Re:He screwed up. by Dutch+Gun · · Score: 5, Interesting

    Except, his "one mistake" was bragging about his find to his buddies (the exploits were found and submitted, so there was no reason to do so), and Oops! it went public, obviously in a way that Groupon happened to spot it as well*. Now it's essentially out in the wild before a fix was in, however you want to spin it. That's the exact opposite of "responsible disclosure". If you tell someone else about an exploit, even in private, you no longer have control of that information. Groupon is, I think, making a point that they take the "responsible disclosure" part of that agreement seriously.

    Note in the article:

    He also points out that another company, Sucuri Security, was happy to pay out even after a tweet revealed some details of a security flaw in their product.

    Was this also by him, meaning this isn't the first time he's done this? Or one of his colleagues? How do you accidentally tweet about an undisclosed security disclosure? Is it too much to ask them to simply NOT blab about it to others in public forums? Either way, it learns like these guys need to learn how to keep their mouths shut about the vulnerabilities they discover until the fix is confirmed, that is, if they actually want a bounty. What the hell is so hard about NOT talking about a security exploit you've discovered? Ok, sort of a dick move by Groupon (no surprise), but it's hard for me to feel too sorry for this guy either.

    * My theory is that Groupon was actually emailed that the vulnerability was made public on XSSposed.org. If a company doesn't respond, XSSposed simply publishes the vulnerability and emails a notification to the webmaster, as they seem to be all about public exposure. This site also gives "rankings" to security researches, so there seems to be an incentive to share the details of an exploit before it's fixed with others on the site in order to get "credit" for the discovery (and this guy is that the top of the list), which seems like a really bad incentive.

    --
    Irony: Agile development has too much intertia to be abandoned now.
  17. Re: Good for them by praxis · · Score: 2

    Especially since it appears sometimes bounty programs cost almost nothing to implement.