iPhone Bugs Are Too Valuable To Report To Apple (vice.com)
An anonymous reader writes: Last year, Apple launched a long-awaited bug bounty program to reward friendly hackers who report flaws in the iPhone to the company. Despite inviting some of the best hackers in the world to join, it's a bit of a flop so far. The iPhone's security is so tight that it's hard to find any flaws at all, which leads to sky-high prices for bugs on the grey market. Researchers I spoke to are reluctant to report bugs both because they are so valuable and because reporting some bugs may actually prevent them from doing more research. "People can get more cash if they sell their bugs to others," said Nikias Bassen, a security researcher for the company Zimperium, and who joined Apple's program last year. "If you're just doing it for the money, you're not going to give [bugs] to Apple directly." Patrick Wardle, a former NSA hacker who now specializes in MacOS research and was invited to the Apple bug bounty program, agreed. He said that iOS bugs are "too valuable to report to Apple."
Apple's pockets are a little deeper than most.
They could surely increase the bounty to a point where no one could possibly compete with them.
Then Apple is not paying well enough if the grey* market pays better.
* NSA, FAPSI, 3PLA, etc
Someone willing to sell bugs to criminals if they pay better is greyhat at best.
Thus lowering the quality of the developers who work on iOS which increases the bug count.
No, I don't think a positive feedback loop is a good idea.
One would be a fool to think that Apple does not also purchase bugs on the black market through intermediaries. Having an inexpensive bug bounty gives incentive to all the white hats out there to do their part to increase Apple security.
For everyone else, Apple will buy exploits in the wild paying market value. If they increased their bug bounty program to this level, it would not increase their ability to get ahead of black hats since they would have to pay over market price to lure them over, but it would make all their other submitted bugs more expensive.