Microsoft Corp. has announced a major update to its bug bounty program, extending coverage to include any vulnerability affecting its online services. This new framework, referred to as “In Scope By Default,” is an important shift in how the tech giant approaches coordinated vulnerability disclosure.
Under this updated model, every Microsoft online service is automatically eligible for bounty awards from the moment it launches. Previously, the company relied on product-specific scope definitions, which often caused confusion for security researchers and limited the range of vulnerabilities eligible for rewards. By making all services In Scope By Default, Microsoft aims to make participation in the bug bounty program more predictable while ensuring critical vulnerabilities are addressed and incentivized regardless of their origin.
A key feature of the expanded scope is its coverage of third-party and open-source components integrated into Microsoft services. This means that vulnerabilities in external libraries, dependencies, or open-source packages that power Microsoft’s cloud infrastructure are now eligible for bug bounty rewards, not just flaws in Microsoft’s own software.
A Strategic Shift in Bug Bounty Security Incentives
Tom Gallagher, vice president of engineering at the Microsoft Security Response Center (MSRC), highlighted the significance of the change in a December 11, 2025, blog post. He described it as more than an administrative adjustment, calling it a structural realignment designed to reflect real-world risk. Gallagher explained that by defaulting all services into scope, Microsoft hopes to reduce reporting delays, minimize confusion, and allow researchers to focus on vulnerabilities with meaningful impact on customers.
“If Microsoft’s online services are impacted by vulnerabilities in third-party code, including open source, we want to know,” Gallagher stated. “If no bounty award formerly exists to reward this vital work, we will offer one. This closes the gap for security research and raises the security bar for everyone who relies on this code.”
The new policy also allows Microsoft to collaborate more effectively with researchers on upstream or third-party vulnerabilities. The company can now assist with developing fixes or support maintainers when issues in external codebases directly affect Microsoft services.
Industry Reaction and Expected Impact
All new Microsoft online services now fall under bug bounty coverage from day one, while millions of existing endpoints no longer require manual approval to qualify. The update is designed to make it easier for security professionals to identify and report vulnerabilities across Microsoft’s expansive ecosystem.
The new approach aligns with Microsoft’s broader security philosophy in an AI- and cloud-first environment, where attackers exploit any weak link, regardless of ownership. According to Gallagher, “Security vulnerabilities often emerge at the seams where components interact or where dependencies are involved. We value research that takes this broader perspective, encompassing not only Microsoft infrastructure but also third-party dependencies, including commercial software and open-source components.”
Last year, Microsoft’s bug bounty program and its Zero Day Quest live-hacking event awarded over $17 million to researchers for high-impact discoveries. With the In Scope By Default initiative, the company expects to expand eligibility even further, particularly in areas involving Microsoft-owned domains, cloud services, and third-party or open-source code.
Researchers participating in the program are expected to follow Microsoft’s Rules of Engagement for Responsible Security Research, ensuring customer privacy and data protection while enabling coordinated vulnerability disclosure. By widening its bug bounty scope, Microsoft aims to raise the overall security bar.