This isn't the first time the company has launched a similar bug hunter program, paying out $4 million over the last handful of years. The new program is titled Android Security Rewards, enabling those with knowledge of security vulnerabilities in Android to receive a reward for forwarding details to Google.
It's a positive initiative that helps protect consumers against bug abuse by hackers and criminals, who seek to exploit said vulnerabilities to target owners of hardware running Android. Providing a test case, as well as CTS test and patch will result in a higher reward.
Have a bug already jotted down? Report the issue to AOSP's public bug tracker using the Security Bug Report template. Do note that only the Nexus 6 and Nexus 9 are eligible for the time being.
See the official page for more details on the program.
Source: Google
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