The article examines bug bounty policies, where companies reward ethical hackers for identifying system vulnerabilities. The literature review discusses how these pen testers reduce costs by addressing security flaws proactively rather than reactively, which is an effective method to reduce costs in cybersecurity whilst increasing security. Findings highlight both economic and social benefits, financially, bug bounties mitigate the high costs of potential breaches, which allows businesses to stay operational, while socially, they create a community of security experts who contribute to overall safety. However, challenges include determining fair compensation and managing program transparency to encourage participation while protecting sensitive information.