The biggest risk to API security isn’t attackers—it’s how companies misunderstand APIs. They see them as engineering tools rather than business-critical contracts that connect systems, partners, and customers. Data leaks, fraud, and service disruptions aren’t just caused by bad code; they stem from APIs being built, deployed, and monetized without security as a priority.
Worse, most companies don’t even know how many APIs they have, let alone what they expose. APIs are deployed faster than they can be inventoried or secured, leaving security teams scrambling to catch up. Meanwhile, attackers exploit gaps that traditional controls fail to catch, especially in business logic.
In this article, we’ll unpack why traditional API security keeps failing, the biggest API security challenges today, and what security leaders must do to regain control.
Top 5 API Security Challenges
1. Unauthenticated and Unprotected APIs
Authentication ensures that only valid users can access an API, while authorization determines the level of access they have. Many APIs are deployed without proper authentication or security controls, making them easy targets for attackers. Improper authorization checks may allow users to escalate their privileges and gain unauthorized access to sensitive data and functions.
In 2021, John Deere, a top agricultural company, suffered an API vulnerability that allowed attackers to access sensitive customer data. Since they implemented a weak authentication, information could be retrieved by modifying API requests.
To get over a challenge like this, implement strong OAuth 2.0 mechanisms, setup strong Role Based Access Controls (RBAC) policies, employ JWT based authentication, and regularly check-up on permissions each API has.
2. Third-Party API Risks
Many organizations use Third-party APIs and integrations, and that expands an organization’s attack surface. A compromised third-party API can introduce security vulnerabilities, leading to data leaks, malware injection, or unauthorized system access. If a third-party API is compromised, attackers can exploit it and use it as a backdoor to access an organization’s system.
In 2023, a third-party payment API suffered a breach that exposed the financial transaction data of thousands of merchants using their service. Although the merchants had strong security, the third-party API did not follow the same security standards and couldn’t withstand the attack.
The easiest way to get over this challenge is to implement zero-trust architecture and least-privilege access controls for third-party dependencies. You can also implement API gateways to filter and monitor incoming API requests.
3. Business Logic Abuse
Attackers manipulate API logic to exploit legitimate workflows, bypass authentication, or extract sensitive data. Unlike traditional vulnerabilities that exploit weaknesses in authentication or encryption, business logic attacks leverage legitimate API functionality in a malicious manner
In 2023, an e-commerce company suffered a massive loss of revenue when attackers discovered that a vulnerability in the API logic allowed them to apply multiple discount codes and get the products for free or at nearly zero.
This challenge can be resolved by implementing strict input validation and logical constraints to prevent unintended behavior. Use anomaly detection rules to detect any suspicious API usage. Additionally, set rate limiting to monitor excessive API interactions.
Why Astra is the best in API Pentesting?
- We’re the only company that combines artificial intelligence & manual pentest to create a one-of-a-kind pentest platform.
- Runs 120+ test cases based on industrial standards.
- Integrates with your CI/CD tools to help you establish DevSecOps.
- A dynamic vulnerability management dashboard to manage, monitor, and assess APIs your web app consumes.
- Conduct 2 rescans in 60 days to verify patches.
- Award publicly verifiable pentest certificates which you can share with your users.
- Helps you stay compliant with SOC2, ISO27001, PCI-DSS, HIPAA, etc.
- Trusted by the brands you trust like Agora, Spicejet, Muthoot, Dream11, etc.
4. Inadequate Inventory Management
Organizations often deploy APIs without maintaining a comprehensive inventory, leading to shadow APIs, outdated endpoints, and undocumented integrations. Without a centralized record of all active APIs, security teams struggle to monitor, secure, and decommission outdated or unused APIs. This lack of visibility increases the attack surface, allowing attackers to exploit forgotten APIs that remain exposed to the internet.
In 2022, a multinational e-commerce company suffered a major data breach after attackers discovered an old, untracked API endpoint that was still accessible. The API, originally created for an internal analytics tool, had been deprecated years earlier but remained live. Since the security team was unaware of its existence, the API was never updated or secured.
This challenge can be overcome by maintaining a centralized API inventory, establishing a proper API lifecycle management process, and documenting active and inactive APIs.
5. Compliance and Data Privacy Challenges
APIs that handle personal, financial, or healthcare data must comply with strict regulatory requirements such as GDPR, HIPAA, PCI-DSS, CCPA, and SOC 2. Organizations that fail to secure APIs according to these regulations face hefty fines, legal actions, and reputational damage. Misconfigured APIs, excessive data exposure, or insecure authentication mechanisms can lead to compliance violations, affecting business continuity and customer trust.
In 2023, a healthcare provider was fined $1.5 million under HIPAA regulations after an unsecured API leaked patient records, including medical histories and prescription details. The exposure resulted from a misconfigured API endpoint, which allowed unauthorized users to access patient data without authentication.
To resolve this challenge, you should implement strong encryption, strict access control, and logging mechanisms to meet the regulatory standards.
API Security Checklist
Authentication & Authorization
- Implement OAuth 2.0 with OpenID Connect
- Implement Multi Factor Authentication (MFA)
- Use JWT Authentication with strict expiration policies.
- Enforce strong RBAC policies
Third-Party API Security
- Enforce Zero-Trust access control for all third-party integrations
- Implement API firewalls to filter API traffic
- Monitor third-party API behaviour for anomalies
- Vet all third-party APIs for security and compliance
Business Logic Security
- Conduct deep business logic testing to detect API abuse
- Use anti-automation techniques to prevent API misuse
- Enforce logical constraints on API inputs
- Implement session tracking and anomaly detection
API Inventory & Shadow API Management
- Use API discovery tools to detect APIs
- Maintain a centralized API inventory
- Ensure all unused APIs are retired and documented
- Implement strong API lifecycle management policies
Compliance & Regulatory Requirements
- Implement logging systems to track API requests and access
- Encrypt all financial and Personally Identifiable Information (PII)
- Perform privacy impact assessments before deploying APIs
- Maintain detailed documentation for compliance audits
How Can Astra Help?
Astra Security provides a comprehensive API security solution that helps organizations detect vulnerabilities, prevent attacks, and ensure compliance. Astra’s expert-led penetration testing simulates real-world attacks to uncover business logic vulnerabilities.
Their automated security solutions within the CI/CD pipelines provide shift-left API security. Support for a wide array of integrations from Slack to GitHub to Jenkins allows Astra’s scanner to be a part of the API development life cycle and proactively look for vulnerabilities.
Final Thoughts
Securing APIs means that organizations must strengthen authentication, protect data, monitor threats, and conduct regular security testing. Addressing risks like shadow APIs, third-party vulnerabilities, and business logic abuse is critical. Proactive security measures and compliance adherence help prevent information exposure and data breaches. Partnering with security providers like Astra Security allows adhering to regulatory compliances along with security the API infrastructure.
