Modern applications are built on the backbone of APIs, or Application Programming Interfaces. When APIs are used on such a massive scale, managing them becomes a significant challenge for security teams. Shadow APIs further compounds this problem.
Shadow APIs are undocumented or unmanaged APIs that often exist due to oversight. They are typically created as quick fixes, side projects, or leftover functionalities from older versions that are no longer in use. Since they lack official documentation, tracking them can be challenging, making it easier for them to bypass security measures and become vulnerable to attacks.
In this blog, we’ll explore in detail the security risks associated with shadow APIs, how to detect them, and strategies to prevent such risks.
Difference Between Shadow APIs and Official APIs
Official APIs are properly documented, monitored, and actively maintained, and therefore, they comply with security and regulatory standards.
On the other hand, Shadow APIs operate outside the usual protocols, making them a hidden vulnerability in many environments. Since they are not documented, they fail to meet compliance standards. It also expands the attack surface.
Most of these shadow APIs are legacy APIs that lose relevance after system updates and migrations, but they remain active.
Risks of Shadow APIs
Shadow APIs are not inherently malicious, but they can create security risks. The reason is simple: security teams can only protect against API threats they are aware of. How can they defend against the threats they cannot see? If such shadow IT resources go undetected, they can introduce several risks, which includes the following:
Security Vulnerabilities
Shadow APIs often lack proper authentication and access control mechanisms, making them susceptible to unauthorized access. This can lead to the compromise of sensitive information and incidents, such as data breaches. Cybercriminals can carry out further attacks while remaining undetected.
Data Exposure and Breaches
Lack of oversight of shadow APIs can result in unintended data exposure as they operate outside the monitoring purview of organization’s security teams. As a result, malicious activities may go unnoticed, resulting in costly breaches and regulatory penalties.
Compliance and Regulatory Concerns
Shadow APIs can create regulatory and compliance challenges for organizations. This can lead to violations of various regulations, such as GDPR or HIPAA, resulting in regulatory penalties.
The recent Optus breach exemplifies how shadow APIs can lead to significant compliance issues. It stresses the need for managing these risks effectively.
Impact on Business and Brand
Shadow API can inflict lasting damage to an organization’s brand reputation. Breaches caused by unmanaged legacy APIs can lead to a loss of trust and loyalty. Furthermore, operational inefficiencies stemming from such APIs can drain resources. Therefore, addressing these risks becomes imperative for maintaining customer confidence.
Indicators of Shadow API

Though identifying shadow APIs is not easy, there are certain warning signals that indicate their presence. Some common signs include the following:
- Unrecognized API Traffic: Unusual API traffic patterns, such as sudden spikes of traffic from unknown sources, may indicate the presence of shadow APIs.
- Undocumented Endpoints: Such situations often arise when developers use APIs to meet immediate needs without following formal protocols, and then forget them.
- Anomalous Response Times: Unexpected delays in response times can signal the presence of unauthorized or unmonitored API calls.
- Resource Allocation Spikes: Sudden increases in resource usage can be indicative of shadow IT resources like legacy APIs. These APIs may be the culprit behind the consumption of more resources than expected.
Different Tools for Shadow API Detection
Several tools and techniques can help organizations detect shadow APIs effectively:
API Discovery Tools
Several automated tools, such as Google’s Apigee’s Shadow API Discovery, can help scan undetected and undocumented APIs. These tools can analyze traffic patterns and provide detailed insights into potential shadow APIs without impacting performance. Below is a list of some open-source API discovery tools:
- OWASP ZAP (Zed Attack Proxy) can intercept API traffic and find undocumented APIs. ZAP can also do basic security testing.
- Fiddler is a web debugging proxy that intercepts, changes, and examines API traffic. It can intercept all HTTP and HTTPS traffic, which makes it useful to locate client-side APIs.
- Mitmproxy is a free and open-source interactive HTTPS proxy tool. It can be used to check, change, and replay API requests, which makes it useful in uncovering shadow APIs.
Log Analysis Solutions
Using log analysis tools can help monitor API usage. It can help analyze logs for unusual activities, allowing security teams to detect suspicious activities.
Outbound Proxy Monitoring
Monitoring outbound proxies are used to intercept all outgoing API calls. This can help in capturing detailed logs of requests and responses. It helps in the identification of unrecognized log trails by enabling security teams to meticulously analyze unusual patterns.
Effective Methods for Identifying Shadow APIs
Identifying shadow APIs is not easy, but the following strategies can help:
Conduct Regular API Security Audits
The main goal of API auditing is to detect undocumented APIs. It’s important to keep an eye out for any unusual change in how APIs are being created and used. If you notice any unexpected changes, it could be a sign of shadow APIs.
Conduct regular security testing and audits. Using automated API scanners can help scan undocumented APIs. In addition, conducting regular API audits ensures compliance with established regulatory standards, such as OWASP API security risks. They can save you a lot of time and help ensure everything is accurate.
Automate Documentation
Automating API documentation provides continuous visibility into all APIs, ensuring real-time tracking and governance. It helps identify unauthorized hidden APIs quickly, while maintaining an accurate and up-to-date inventory of API usage.
Utilize Outbound Proxies
Leverage outbound proxies to intercept and log all outgoing API calls. Analyzing these logs can help uncover unrecognized API interactions and unusual response patterns.
Employ Live Log Analysis
Integrate live monitoring tools at the API gateway level to detect unauthorized API calls in real time. This ensures optimal performance and early threat detection.
Best Practices for Shadow API Prevention
Here are some of the best practices for shadow API prevention:
Establish API Governance Policies
Set clear API rules and ensure they are strictly followed. It minimizes the chances of creating hidden APIs. The basic purpose behind this approach is to establish a clear protocol for approving new APIs and the consequences of not following the policy.
Implement Access Control and Authentication
Establish role-based access controls (RBAC) in place to restrict who can make or change APIs. Using verification methods like OAuth or API keys can help verify user identity.
Set a Proper API Versioning and Depreciation Policy
API versioning is a major headache for developers, but it’s essential for managing APIs effectively. This issue can be addressed by implementing a clear versioning and deprecation strategy. Here is how it can be done:
- Enable versioning for all internal and external APIs.
- Notify stakeholders early about changes.
- Migrate from deprecated APIs with clear transition paths.
- Streamline the identification and consolidation of outdated or unused API versions.
Educate Developers on API Security Risks
It is important to train developers on API security risks. Conduct regular workshops. Additionally, emphasize on following best practices to avoid such shadow security risks.
Conclusion
On a final note, shadow APIs pose significant risks to security, compliance, and operational efficiency. However, organizations can address these challenges by raising API security awareness among development teams and enforcing strict policies. Additionally, continuous monitoring and targeted security assessments play a crucial role in maintaining a secure API environment.
Ignoring Shadow APIs can expose your organization to financial and reputational risks. Protect your assets with BugDazz API Scanner. Contact us to schedule a demo and see it in action.