The Rising Importance of API Cyber Security

As organisations across the globe deepen their reliance on digital ecosystems, the role of Application Programming Interfaces (APIs) has become indispensable. APIs power everything from mobile apps to cloud services and third-party integrations. However, as the digital landscape evolves, so too do the cyber security threats that target these vital connectors. By 2024, the significance of API cyber security has reached new heights. There are reports indicating API data breaches are up 80%. The expanding use of APIs, particularly in sensitive and complex operations, means securing them is no longer optional, but critical.

​In this blog, we will explore the evolving API threat landscape. We will provide actionable strategies to help you secure your API environment. In addition, you’ll learn about key vulnerabilities, emerging threats, and best practices to protect your organisation from sophisticated API attacks.

API Sprawl: A Growing Concern.

One of the greatest challenges facing organisations is an API sprawl. As businesses increasingly rely on cloud services and digital integrations, they are often unaware of the full extent of their API landscape. A 2024 research report revealed that API usage has surged by 167%, with many businesses managing upwards of 2,500 APIs across different environments​. This rapid growth leads to the phenomenon of shadow APIs, which are undocumented and lack the proper oversight. These shadow APIs create serious vulnerabilities, offering attackers unchecked entry points to exploit.

As APIs proliferate across business systems, maintaining visibility and governance over every API becomes exceedingly difficult. Unmonitored APIs, those that fly under the radar, pose significant risks. This makes it essential for businesses to implement comprehensive API discovery and posture management systems.

The Consequences of API Breaches.

API breaches have far-reaching and often devastating consequences, affecting organisations financially, reputationally, and operationally. An example is the MOVEit breach of 2023, where attackers exploited vulnerabilities in the MOVEit Transfer API. This resulted in the exposure of 175 million records. The breach impacted multiple industries, highlighting how API vulnerabilities can lead to widespread data theft and operational disruptions​.

Such incidents are becoming more frequent, with a 2024 study showing that 95% of organisations have faced security issues in their production APIs, and 23% have experienced actual breaches. This demonstrates the increasing urgency for businesses to prioritise API security.

Beyond the immediate financial loss, which can include regulatory fines and the cost of mitigating a breach, the reputational damage can be long-lasting. Breaches can lead to a loss of customer trust and disruption to business continuity. With the rise of Zero Trust architectures, businesses are adopting more proactive measures to safeguard their APIs and protect against these damaging outcomes​

Moving Beyond Traditional Security Tools.

A major contributor to the surge in API-related breaches is the inadequacy of traditional security tools. Solutions like Web Application Firewalls (WAFs) and Intrusion Detection Systems (IDS), while effective for securing general web applications, are not designed to handle the complexities of APIs. API traffic is unique in that it often includes sensitive business logic, complex data flows, and authorisation mechanisms. These are not always adequately protected by legacy systems.

For example, broken object-level authorisation (BOLA) is one of the most common vulnerabilities found in APIs. This occurs when an API exposes data or functionality to an unauthorised user, often due to inadequate authorisation checks. Traditional security measures may fail to detect this type of vulnerability​. Moreover, the growing server-side request forgery (SSRF) attacks, where attackers manipulate APIs to make unauthorised requests, have become more frequent as cloud-based APIs proliferate​.

The Growing Threat of AI-Driven API Attacks.

The integration of AI-powered APIs has further expanded the attack surface in 2024. The Wallarm Q2 API ThreatStats Report revealed a threefold increase in AI-driven API attacks, with many vulnerabilities arising from improperly secured AI systems​. These attacks are particularly concerning. They often exploit weaknesses in API endpoints that connect AI models to other services,. This potentially leads to data theft, unauthorised access, and manipulation of AI-driven business processes.

AI APIs represent a new frontier in cyber security, with attackers focusing on exploiting the complex logic that underpins AI interactions. As more organisations integrate AI into their digital ecosystems, the risks grow exponentially. This highlights the need for businesses to implement API-specific security measures that address both traditional API vulnerabilities and emerging AI-related threats.

API Security and Compliance.

API security has become a critical component of regulatory compliance, as regulations increasingly recognise the risks posed by insecure APIs. APIs handle vast amounts of sensitive data, such as personally identifiable information (PII), financial data, and healthcare information. All of this information must be protected under regulations like GDPR, HIPAA, PCI-DSS, DORA, and the FCA and related financial regulations discussed during our DORA webinar​.

For example, GDPR requires companies to protect personal data by implementing measures like encryption and least privilege access. APIs must be secured to ensure that only authorised users have access to the data they process. This includes ensuring that APIs are protected from vulnerabilities such as broken authentication and excessive data exposure. These are listed in the OWASP API Security Top 10​.

Failing to secure APIs can result in severe financial penalties and reputational damage. For instance, under GDPR, organisations that mishandle personal data can face fines of up to 4% of their global annual revenue. Similarly, PCI-DSS compliance requires securing APIs that handle payment data to avoid costly breaches​.

Achieving API compliance requires integrating security into the API development lifecycle. This includes continuous monitoring for vulnerabilities, maintaining an accurate inventory of APIs, and ensuring secure coding practices. Businesses must also prioritise regular security testing to identify and address vulnerabilities before they can be exploited​.

By embedding API security into compliance efforts, organisations can protect sensitive data, avoid regulatory penalties, and build trust with their customers.

A Comprehensive Approach to API Security.

To address these escalating risks, businesses must adopt a comprehensive API security strategy that goes beyond traditional security practices.

A successful API security programme should include:

1. API Discovery and Posture Management: Businesses need to ensure that all APIs, including shadow APIs, are identified and accounted for. Comprehensive API discovery solutions provide visibility into the entire API landscape, enabling organisations to assess the security posture of each API​s.
2. Proactive Threat Detection: Real-time monitoring and threat detection are crucial for identifying suspicious API activity before an attack occurs. Machine learning and behavioural analysis can help detect anomalies and potential breaches, allowing security teams to respond swiftly​.
3. Advanced Security Testing: Regular API penetration testing and vulnerability scanning are essential for identifying weaknesses before attackers can exploit them. However, as of 2024, only 7.5% of organisations have implemented dedicated API security testing. This underscores the need for more widespread adoption of these practices​.
4. Rate Limiting and Quotas: Implementing rate limits on API calls can prevent denial of service (DoS) attacks. By limiting the number of requests that can be made in a given timeframe, businesses can mitigate the risk of resource overconsumption and server downtime.
5. Zero Trust Architecture: Adopting a Zero Trust approach means treating every API interaction as potentially untrusted. It requires continuous validation and authorisation at every stage of communication. This model ensures that APIs are protected from internal and external threats alike​.
6. API Traffic Logging and Monitoring: Continuous logging of all API traffic allows businesses to detect and analyse security incidents in real-time. This is crucial for understanding the root cause of breaches and taking corrective actions quickly.

Looking Ahead: The Future of API Security.

The need for robust API security will only intensify as APIs continue to drive innovation in digital ecosystems. With the proliferation of AI-powered APIs and the growing complexity of API environments, the attack surface for malicious actors will continue to expand. As businesses implement more interconnected services, the risk of supply chain attacks, where vulnerabilities in third-party APIs are exploited, will become an even greater concern​.

In response to these evolving threats, organisations must prioritise API security as a core component of their cyber security strategy. The adoption of API-specific security solutions, such as Traceable AI, is essential for staying ahead of the increasingly sophisticated attacks targeting APIs. By integrating comprehensive API discovery, real-time threat detection, and advanced security testing, businesses can mitigate the growing risks. This allows them to ensure the resilience of their digital operations.

Conclusion.

In 2024, securing APIs is more critical than ever. With the number of APIs increasing exponentially and attackers becoming more sophisticated, businesses must adopt a proactive approach to API security. The rise in API-related breaches, coupled with the growing threats posed by AI-driven attacks, makes it clear that traditional security solutions are no longer sufficient. By embracing modern API security strategies, organisations can protect their sensitive data, maintain business continuity, and build trust in an increasingly API-driven world. With the right tools and practices in place, businesses can mitigate the risks and reap the rewards of a secure, resilient API ecosystem​.