A detailed guide on API security risks

Developers use APIs all the time while building new applications or when they have to connect two or more apps, data, or systems. 

Unfortunately, it’s not just the developers who benefit from APIs. A growing number of bad actors are also taking advantage of APIs - especially those poorly designed and monitored - to gain unauthorized access to sensitive data and wreak havoc on the financial health of their target organizations. 

Nearly 94% of responders to a survey confirmed that they had experienced some form of API security problems in their organizations. Furthermore, more than 50% of companies are postponing their API releases due to concerns about API security. 

A deep understanding of how APIs function and all the security risks associated with their APIs can empower you to mitigate risks and vulnerabilities and keep your APIs safe and secure. 

But first, let’s understand why we need to secure our APIs.  

Why is it essential to secure your APIs?

APIs are your essential gateway to increased productivity and innovation. They’re the bridge that connects you, your employees, and all the decision-makers, partners, and customers with your apps, systems, and capabilities that you want to share with a larger ecosystem. 

Think of your APIs as the doors to your ‘home sweet home.’ If the doors are not strong and closed adequately, robbers will likely get into your home and steal your valuables. 

By hacking into your APIs, they can do the same with your IT assets - and if that’s not enough, they can steal your customer and business data and put you through some very hard times.  

Also read: Top 8 API integration tools to drive digital transformation in 2024

Understanding major API security risks and how to overcome them

Although APIs have been integrated deeply into how new software applications are developed, or how data, apps, and systems are integrated across the organization, the number of crimes against APIs has risen simultaneously. 

Criminals or bad actors are increasingly finding APIs to be very attractive avenues to break into the systems and crumble an organization to pieces. Here are some common API security risks as well as the API security best practices to safeguard your digital assets: 

1. Injection attacks

Injection attacks are a type of cyber attack in which an attacker exploits vulnerabilities in an application to send malicious code into a system. This code can include unauthorized code, untrusted inputs, system calls, shell commands, or SQL calls to backend databases. 

The goal of an injection attack is to trick the application into performing unintended actions, such as:

• Executing unauthorized commands
• Accessing data
• Manipulating the system's operations
• Reading or modifying a database
• Changing data on a website
• Destroying databases
• Compromising backend systems
• Hijacking other clients connected to the application

We can save our systems and APIs from most of these crimes by simply designing and developing secure APIs. This is probably the most crucial step in securing APIs against all sorts of attacks and manipulations. Your team can also: 

• Use parameterized queries and prepared statements to prevent SQL injection.
• Validate and sanitize input data to prevent other forms of injection attacks.
• Employ strict input validation routines.

2. Insufficient logging and monitoring

Inadequate logging and monitoring can reduce your ability to identify and detect security incidents. To mitigate this risk, you can: 

• Implement comprehensive logging of API activities
• Monitor API traffic for unusual or suspicious behavior
• Utilize intrusion detection and prevention systems (IDPS) to detect and respond to attacks
• Regularly review and analyze logs for security incidents

3. Broken authentication

Weak authentication mechanisms can lead to unauthorized access to APIs and the data and systems they have access to. To mitigate broken authentication risks:

• Use robust authentication methods like OAuth 2.0 or JWT (JSON Web Tokens).
• Implement secure password storage mechanisms such as salted hashing.
• Enforce proper session management and token expiration policies.
• Implement multi-factor authentication (MFA) where appropriate.

4. DDoS attacks

Distributed denial of service (DDoS) attacks are carried out to overwhelm an API so eligible users can not access the API and the data it is designed to transfer. DDoS attacks are a subcategory of general DoS attacks, but they are more prominent in scale. The most common type of DDoS attack is volumetric, also known as ‘Flood.’ To combat DDoS attacks on APIs:

• Use rate limiting and throttling mechanisms to control the number of requests from individual IP addresses or clients.
• Use a content delivery network (CDN) or DDoS mitigation service to combat large-scale attacks.
• Configure load balancers and redundant infrastructure to distribute incoming traffic and minimize service disruptions during DDoS attacks.

5. Data leaks

Poorly developed APIs can be easily compromised by bad actors to gain access to sensitive data, such as personally identifiable information (PII) or credentials. This could occur through insecure transmission channels, inadequate encryption, or insufficient access controls. To ensure adequate protection from  sensitive data exposure through APIs:

• Encrypt sensitive data both at rest and in transit using robust encryption algorithms.
• Implement robust access controls and authentication mechanisms to restrict access to sensitive data.
• Employ data masking techniques to anonymize or obfuscate sensitive information in API responses.

6. Broken object-level authorization (BOLA)

 In the OWASP Foundation’s list of top 10 API security risks for 2023, Bola attacks are placed as the number 1 API security risk due to their widespread nature and ease of exploitation. BOLA attacks happen if an application or API fails to check if the user has a right to access a specific object, such as a document that might contain sensitive data, such as financial information, email addresses, or medical records. 

As APIs grow in size and complexity, they leave behind a larger attack surface with numerous endpoints that can be compromised by bad actors if they are not adequately secured and monitored. To combat BOLA attacks, developers can follow the following practices:  Here are some best practices for developers to significantly reduce the incidences and impact of BOLA attacks

• Implement access controls

Ensure that each request to access an object is authorized and that users can only access objects they have permission to. This can be done by using access control lists or role-based access control mechanisms.

• Design APIs with access control in mind

Define the access control model for each CRUD operation before deploying the API.

• Validate API endpoints

Check each route for proper access control and avoid relying on security by obscurity, such as using obscure identifiers. Be cautious when using tools that automatically generate API endpoints and validate each to ensure it adheres to the access control model.

Development teams should also be encouraged to follow secure coding practices to develop robust APIs in the very first place. Additionally, responsible teams can conduct regular security checks to ensure that attacks or manipulations can be identified at the first appearance. 

7. Lack of Proper API Documentation

APIs need to be well-documented. Incomplete or inaccurate documentation can lead to improper use of APIs, introducing security vulnerabilities.

Solution:

• Comprehensive documentation: Provide detailed and accurate API documentation, including security guidelines and usage examples.
• Update regularly: Ensure documentation reflects changes and new security practices.
• Access control: Restrict access to sensitive parts of the documentation to authorized users only.

It’s interesting to note that API security risks can be many and not just these 7 or 8 or 10. But what we discuss are the most common ones. By following API best practices, such as secure coding, we can ensure that our API portfolios are agile, robust, and resilient. 

Also read: 7 critical metrics you should track when productizing APIs

How do you secure your APIs against these rampant attacks and threats?

The first step is to implement the security tips we have shared along with each and every API threat. 

The second and more crucial step is understanding that protecting APIs requires more mindful and consistent work across teams and roles. 

To fortify your API defense, embed API security  best practices right within the core of your API development process:

• Authentication and authorization: Authentication verifies a user's identity before they can request access to an API, while authorization determines the level of access they have.
• Logging and monitoring: Helps prevent cyber attacks by providing visibility into abnormal API usage and allowing for the detection of malicious activity in real time.
• Rate limiting: Helps prevent common attacks like Denial of Service (DoS) by preventing the API Gateway from being overwhelmed by requests.
• Transport Layer Security (TLS): A fundamental component of a secure API that prevents hackers from accessing the API and the data it passes through.
• API tokens: Considered one of the most secure authentication methods, but their use needs to be monitored to maintain security.
• API gateways: Act as a point of enforcement for API traffic, allowing businesses to authenticate traffic, control, and monitor API usage.
   

Also read: 5 API security best practices you can implement to protect your APIs 

Bottom line

From energy to healthcare and insurance to banking, the frontrunners across various industries are increasingly taking care of their API portfolios. By not making API security a key priority, you are making your business more vulnerable to cybercriminals. 

Often, a clear strategy and constant monitoring of your API landscape are required to secure APIs. Focus on building with a ‘Security-first’ mindset and not a ‘we’ll think security later on’ approach. When you embed security early on, the product will likely be more resistant to these attacks. 

In addition, once the APIs are live, a mechanism to monitor their health and performance and set up a comprehensive list of actions in case malicious traffic or activity is identified must be built. 

We hope that this blog helps you better understand API security threats and ways to manage them. For more information about API development and security, please contact Team Kellton. 

API security: Important FAQs

1. What are APIs?

APIs stand for Application Programming Interfaces. They are connectors that enable two apps, systems, or microservices to communicate with each other. 

Without APIs, it will become increasingly difficult for IT teams to help their organizations become more connected and data-driven. At the same time, not leveraging APIs will also adversely affect time to market and overall customer experience. 

2. What are REST APIs?

REST APIs conform to the design principles of the representational state transfer (REST) architectural style. They are a common API used to integrate apps or components in a microservices-based architecture. 

These APIs are commonly used in web and mobile applications to retrieve or modify resources and data on remote systems. 

3. What are the differences between REST APIs and SOAP APIs?

Both REST AND SOAP APIs help connect apps, data, and systems. However, SOAP and REST are two different approaches to API design. While SOAP is a structured protocol that uses XML data format, REST APIs are more flexible and enable apps and systems to share data in multiple formats.