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How API Security is Emerging as a Potential Threat to Data-Driven Enterprises


Application programming interfaces play a big role in data-driven enterprises since they rely largely on their software application architecture. APIs have led to a sea change in the way we use web applications as they act as a communication pipeline between numerous services. Using APIs, developers can incorporate any contemporary technology into their architecture, which is quite helpful for including functionality that a consumer needs. 

APIs, by nature, are at risk of getting the application logic or sensitive data exposed, such as personally identifiable information (PII). Since APIs are generally accessible over public networks, they are often well-documented and can easily be manipulated and reverse-engineered by a threat actor. Additionally, they are susceptible to DDoS attacks. 

Since most significant data leaks happen as a result of defective, vulnerable, or hacked APIs, exposing data like medical, financial, or personal information, it is crucial to ensure the security of APIs. Additionally, if an API is not properly secured, it could result in numerous cyberattacks, making API security essential for today's data-driven enterprises. 

Critical API vulnerabilities and attacks 

In recent times, APIs have emerged as a preferred method for establishing more advanced applications, significantly for mobile devices and the internet of things (IoT). however, some businesses still need to fully understand the possible risks pertaining to their APIs while making them accessible to the public, given the continually evolving application-development methodologies and pressure for innovation. 

Businesses should as well be cautious of these typical security errors before public deployment.

Authentication flaws: Many APIs deny requests for authentication status made by legitimate users. Threat actors could take advantage of these exploits in a variety of ways by replicating API requests, such as session hijacking and account aggregation. 

Lack of encryption: Several APIs lack encryption layers present between the API client and server. Flaws as such could lead a threat actor into intercepting unencrypted or stealing sensitive data via unencrypted or inadequately protected API transactions. 

• Flawed endpoint security: Since most IoT devices and microservices are created in order to communicate with the server via an API channel, hackers often attempt to acquire unauthorized access over them through IoT endpoints. This frequently causes the API to reorder its sequence, leading to a data breach. 

Challenges Faced by API Security

As per Yannick Bedard, head of penetration testing, IBM security X-Force Red, one of the challenges in API security in current times is going through tests for security, for intended logic flows could be difficult to understand, and test it is not clearly comprehended. 

Bedard tells VentureBeat, “In a web application, these logical flows are intuitive through the use of the web UI, but in an API, it can be more difficult to detail these workflows […] This can lead to security testing missing vulnerabilities that may, in turn, be exploited by attackers.” 

“It is common for services to inherently trust data coming from other APIs as clean, only for it to turn out to not be properly sanitized,” says Bedard.  “Malicious data would eventually flow to backend APIs, sometimes behind many other services. These APIs would, in turn, be vulnerable and could provide the attacker an initial foothold into the organization.”

“The top challenge is discovery, as many security teams just aren’t sure how many APIs they have,” says Sandy Carielli, principal analyst at Forrester. 

Carielli said that many teams unknowingly deploy rogue APIs or there may be unmaintained APIs that are still publicly accessible, which can lead to several security hazards. 

According to her, many teams obliviously use rogue APIs, and there may be unmaintained APIs that are still accessible to the general public. This poses a number of security risks. “API specifications could be outdated, and you can’t protect what you don’t know you have,” she said. “Start by understanding what controls you already have in your environment to secure APIs, and then identify and address the gaps. Critically, make sure to address API discovery and inventory.” 

Best practices to enhance API security 

Listed are a few approaches that may be utilized in order to effectively secure your system against API intruders: 

API gateway: API gateway serves as the cornerstone of an API security framework, since it is easy to create, administer, monitor, and secure APIs, and serves as the cornerstone of an API security framework. The API gateway can enable API monitoring, logging, and rate limitation in addition to protecting against a variety of threats. Additionally, it may automatically validate security tokens and restrict traffic depending on IP addresses and other data. 

Web application firewalls (WAF): WAF serves as a layer between traffic and the API gateway or application. It offers an additional security layer against threat actors, like bots, by providing malicious bot detection, the ability to detect attack signatures, and additional IP intelligence, WAFs can be useful for preventing malicious traffic from entering your gateway in the first place. 

Security applications: Standalone security applications with features like real-time protection, static coded and vulnerability scanning, built-time checking, and security fuzzing can as well be incorporated into the security architecture. 

Security in code: An internal form of security that is built into the API or apps is security code. However, it can be challenging to apply uniformly across all of your API portfolios the resources necessary to verify that all security measures are applied appropriately in your API code.   

API Security Losses Total Billions, US Companies Hit Hard


According to the analysis of breach data, US companies are the ones affected the most by the APIs. Companies have lost a combined amount of $12 billion to $23 billion in 2022 from compromises linked to Web application programming interfaces (APIs). 

APIs are used in Internet of Things (IoT) applications and on websites. An API is a mechanism that facilitates two software systems to interact. It controls the types of requests that take place between programs, how these requests are made, and the kinds of data formats used. For example, the Google Maps application on a mobile device does not contain names of all the streets, cities, towns, and other landmarks on your device. Instead, it connects to another application within the Google server that contains all of that information and this connection is made possible using an API. 

The data over the last decade suggests that API security has leveled up as a significant cybersecurity problem. Following the information, the Open Web Security Application Project (OWASP) has listed the top 10 APl security issues in 2019. 

It has explained various API weaknesses including broken authorization for objects, weak user authentication, and excessive data exposure as sensitive issues for software makers and companies that rely on cloud services. Thus, API security has become increasingly important. 

APIs work as the backend framework for mobile and web applications. Crucial and sensitive data is transferred between users, APIs, and applications and systems. Therefore, it is important to protect the sensitive data they transfer. 

According to the report 'Quantifying the Cost of API Insecurity' published this week by application-security firm Imperva and risk-strategy firm Marsh McLennan – cybersecurity issues would grow as APIs continue to become a common pattern for cloud and mobile devices.

"The growing security risks associated with APIs correlate with the proliferation of APIs. The volume of APIs used by businesses is growing rapidly — nearly half of all businesses have between 50 and 500 deployed, either internally or publicly, while some have over a thousand active APIs," says Lebin Cheng, vice president of API security for Imperva. 

Further, in Asia, more than 100 combined API security incidents occurred, and in the US more than 600 API security events. To prevent this, companies have to gain visibility into how they are using APIs and create a complete inventory of the API traffic in their network.

Public Cloud Infrastructures suffering from Security Loopholes and Vulnerabilities, researchers say


Igal Gofman, XM head of security research, and Yaron Shani, XM senior security researcher, in their research, found a new attack vector in cloud providers API ( application programming interface), that gives miscreants a window to access secured cloud data. Public Cloud Infrastructure, has added a new invisible management layer, that complicates the procedure creating security challenges, that requires better understanding. Often organizations fail to understand this management layer and hence lag in securing it, inviting attacks.

Working with public cloud infrastructure without the right understanding of risks and security challenges may lead to fatal consequences with customer risks, as was the case in Capital One breach."Current security practices and controls are not sufficient to mitigate the risk posed by a misunderstanding of the public cloud", said the researchers.

 Findings in the research

Researchers found that public cloud providers' APIs' accessibility over the internet opens a window for adversaries to exploit and gain access to confidential data on the cloud. And current security systems and practices are not equipped to beat the risk posed by misconfiguration of the cloud.

People who are in charge of managing cloud resources can easily gain access to APIs' using software kits and command-line tools as they are part of the development and IT team. "Once those account credentials are compromised, gaining access to high-value resources is trivial," the researchers say. Cloud APIs' can be accessed through the internet, with the correct API key, for example, the Command line interface tool, which saves the user's credentials which can be accessed by the cloud provider.

Attackers don't need a very sophisticated approach to sneak in cloud API, "In practice, the sophistication required to develop such tools is not high, because basically all the information is publicly available and well-documented by most cloud providers, meaning they document each security feature in great detail and it can serve both the defenders and the adversaries," Gofman and Shani say. And once, their credentials are compromised using cloud providers tools, it's easy for the black hats to rob you blind.

In order to protect themselves, organizations and companies should follow the best practice guidelines from the cloud provider. Large organizations should constantly and periodically monitor permissions and risk factors. Analyzing attack paths can decrease the risk factors, suggest the researchers.