Business Logic Bugs

# What are Business Logic Bugs ?

Business Logic Bugs are flaws in the implementation of an
application's business logic. Business logic refers to the specific
rules and processes that dictate how data flows, decisions are
made, and operations are performed within an application to
fulfill its intended purpose. These bugs arise when the
application does not correctly implement or handle the
intended business processes.
Characteristics of Business Logic Bugs:
1. Context-Dependent: They often depend on the specific
domain or purpose of the application, such as e-
commerce, banking, or healthcare.
2. Not Technical Errors: These are not caused by
programming syntax or standard software flaws (like SQL
injection or buffer overflows), but by incorrect handling of
business rules.
3. Process-Oriented: They manifest in workflows, user
interactions, or automation processes.
4. Hard to Detect: Traditional automated security tools may
not catch them, as they require an understanding of the
business processes.
# Difference vulnerabilities that can be considered
Business Logic Bugs ?
1. Authorization and Access Control Flaws
 Description: These occur when the application incorrectly
grants or denies access to certain resources or actions.
 Examples:
o A user is allowed to view or modify resources they
shouldn't have access to (e.g., accessing other users'
data).
o Employees with basic roles gaining administrative
privileges due to workflow flaws.
 Real-World Impact:
o Data breaches, unauthorized changes to critical
records.

2. Improper Input Validation

 Description: The application fails to validate user inputs in
alignment with the business rules.
 Examples:
o Submitting negative values for a quantity field to
receive a refund.
 o Bypassing validation by directly manipulating API calls
(e.g., changing product prices to $0).
 Real-World Impact:
o Revenue loss, incorrect financial reporting.

3. Workflow Exploitation
 Description: Users manipulate or deviate from the
intended sequence of actions in workflows.
 Examples:
o Skipping payment verification by altering the URL or
session flow.
o Modifying order details after placing an order but
before payment is confirmed.
 Real-World Impact:
o Delivery of goods/services without payment.

4. Discount and Pricing Logic Issues

 Description: Errors in applying discounts, promotions, or
price calculations.
 Examples:
o Applying multiple discount codes simultaneously
when only one is allowed.
 o Exploiting rounding errors to purchase items at
negligible prices.
 Real-World Impact:
o Revenue leakage, stock depletion.

5. Insufficient Rate Limiting

 Description: The application does not enforce limits on the
frequency or volume of user actions.
 Examples:
o Spamming an account creation form to register
multiple accounts and abuse referral bonuses.
o Sending thousands of fraudulent payment requests to
overwhelm the system.
 Real-World Impact:
o System downtime, abuse of incentives, operational
overhead.

6. Logic Bypass
 Description: Users bypass certain conditions or constraints
imposed by the business process.
 Examples:
 o Approving their own refund requests without
administrative oversight.
o Skipping required steps (e.g., not uploading required
documents during registration).
 Real-World Impact:
o Fraud, regulatory non-compliance.

7. Inventory Management Errors

 Description: Flaws in tracking or updating inventory during
business transactions.
 Examples:
o Placing an order for an out-of-stock item due to
delayed inventory updates.
o Exploiting concurrency issues to purchase more items
than available stock.
 Real-World Impact:
o Overcommitted stock, customer dissatisfaction.

8. Improper Error Handling

 Description: Error messages expose sensitive information
or allow users to manipulate processes.
 Examples:
 o A payment gateway error leading to duplicate
payments or unpaid orders.
o Revealing sensitive API endpoints or business rules in
error responses.
 Real-World Impact:
o Financial loss, potential data leakage.

9. Improper State Management

 Description: The application fails to correctly handle
session or state transitions.
 Examples:
o Users completing restricted actions by manipulating
session tokens or cookies.
o Reusing expired session tokens to perform
unauthorized operations.
 Real-World Impact:
o Security violations, privilege escalation.

10. Excessive Trust in Client-Side Logic

 Description: Critical business logic is implemented on the
client side, making it easy to manipulate.
 Examples:
 o Price calculations performed on the client-side
JavaScript, allowing users to tamper with the values.
o Client-side checks for role-based access, bypassed by
tampering with local storage.
 Real-World Impact:
o Fraud, compromised security.

11. Payment Workflow Issues

 Description: Bugs in how payment processes are initiated,
verified, or confirmed.
 Examples:
o Completing an order without a successful payment.
o Exploiting partial payment systems to acquire goods
without full payment.
 Real-World Impact:
o Loss of revenue, unaccounted transactions.

12. Concurrency Issues

 Description: Flaws that arise when multiple processes
interact with shared resources simultaneously.
 Examples:
 o Exploiting race conditions to double-purchase items
while stock updates are delayed.
o Submitting multiple refund requests for the same
order at the same time.
 Real-World Impact:
o Stock mismatches, financial discrepancies.

# Impact and Mitigation Measures

Impact of Business Logic Bugs can vary widely, depending on
the application and the specific flaw. These bugs often result in
financial losses, reputational damage, and operational
inefficiencies. Below are detailed impacts and their
corresponding mitigation measures to address and prevent
such vulnerabilities effectively.

1. Financial Impact
 Examples:
o Revenue loss from incorrect pricing or discount logic.
o Fraudulent transactions bypassing payment
processes.
o Stock depletion due to inventory manipulation.
 Mitigation Measures:
 o Rigorous Testing: Perform unit and integration testing
to validate business workflows.
o Simulate Real Scenarios: Use fuzz testing and
simulated attacks to test pricing and payment logic.
o Automated Monitoring: Deploy tools to track unusual
transactions and flag anomalies in real time.

2. Data Breaches
 Examples:
o Unauthorized access to sensitive user data due to
flawed role-based access control.
o Exposing confidential information through logic flaws
in error handling.
 Mitigation Measures:
o Access Control Validation: Implement a robust role-
based access control (RBAC) system.
o Error Message Sanitization: Avoid exposing sensitive
details in error responses.
o Regular Security Audits: Review business logic for
unauthorized data access vulnerabilities.

3. Reputational Damage
  Examples:
o Negative customer experiences due to mismanaged
workflows (e.g., incorrect refunds or failed orders).
o Publicized exploits highlighting flaws in the
application’s logic.
 Mitigation Measures:
o Customer-Focused Testing: Test user journeys from
the perspective of end-users to ensure seamless
workflows.
o Bug Bounties: Encourage ethical hackers to find and
report vulnerabilities before malicious actors exploit
them.
o Transparent Communication: Respond to incidents
promptly with clear explanations and fixes.

4. Regulatory and Legal Consequences

 Examples:
o Fines for non-compliance with laws due to incorrect
handling of taxes or customer data.
o Legal liabilities arising from fraud enabled by business
logic bugs.
 Mitigation Measures:
 o Compliance Checks: Regularly update workflows to
adhere to local and international regulations.
o Audit Trails: Maintain detailed logs of transactions
and user actions to support investigations.
o Stakeholder Collaboration: Involve legal and
compliance teams in workflow design.

5. Operational Inefficiencies
 Examples:
o Over- or under-production due to incorrect demand
predictions from inventory logic.
o Increased support tickets from customers facing
issues caused by flawed logic.
 Mitigation Measures:
o Workflow Automation: Use tested automation tools
to reduce human errors in processes.
o Load Testing: Test the application under high usage to
identify and fix bottlenecks.
o Proactive Maintenance: Regularly review and refine
business rules as the business evolves.

6. Fraud and Abuse

  Examples:
o Abuse of promotional codes to get free or heavily
discounted goods.
o Exploiting refund policies to receive goods or services
for free.
 Mitigation Measures:
o Abuse Detection: Implement abuse detection
mechanisms like rate-limiting, anomaly detection, and
fraud scoring.
o Time-Limited Operations: Restrict operations (e.g.,
discounts or refunds) to specific time frames.
o Multi-Level Approval: Require multiple validations for
critical actions, such as refunds or promotions.

General Mitigation Framework

1. Understand the Business Logic:
o Collaborate closely with stakeholders to gain a deep
understanding of business workflows and rules.
2. Threat Modeling:
o Identify potential misuse cases and areas vulnerable
to exploitation within the workflows.
3. Secure Development Practices:
 o Incorporate secure coding principles and avoid
excessive reliance on client-side validations.
4. Comprehensive Testing:
o Use both manual and automated testing approaches,
including:
 Static Testing: Reviewing code for potential logic
errors.
 Dynamic Testing: Testing the application in
runtime scenarios.
 Penetration Testing: Attempting to exploit logic
vulnerabilities to simulate malicious behavior.
5. Logging and Monitoring:
o Implement robust logging to track user actions and
workflows for quick detection and remediation of
anomalies.
6. Regular Audits and Updates:
o Perform periodic audits of business logic to ensure
workflows remain secure and aligned with evolving
business needs.
7. Incident Response Plan:
o Prepare a detailed response plan for identifying,
mitigating, and communicating issues related to
business logic bugs.
# Labs of Portswigger