The use of SaaS applications has fueled the unprecedented growth of APIs as organisations significantly rely on dozens of SaaS applications for almost everything. Statistics reveal that, on average, large-size organisations use around 447 SaaS apps, and every new tool introduces a potential source of new API endpoints, which usually go undocumented and lead to the emergence of shadow or unmanaged APIs. Shadow APIs have become a challenge for organisations as they aren't officially approved or documented by the security teams.
Postman's State of the API Report 2024 reveals that only 37% of API developers prioritise API testing. This alarming situation makes such APIs the number one lurking threat for organisations. Unmonitored APIs often lead to data breaches, compliance violations, and financial losses that threaten an organisation's overall cybersecurity posture.
Considering these negative consequences, CISOs and developers must address these risks by integrating comprehensive security practices. The Dark Side of Shadow APIs Within SaaS Ecosystem As SaaS adoption accelerates, so does the complexity of managing the APIs that power these applications. While APIs enable seamless integrations and data flow, their unchecked growth, especially shadow APIs, poses serious security risks.
Below are some key challenges and consequences that make shadow APIs a growing threat in today's SaaS environments: 1. SaaS Sprawl and the Rise of Unmanaged APIs Each SaaS app comes with its API, or organisations may embed third-party services within their products, introducing unknown APIs. Security teams are usually unaware of APIs embedded within the apps and services.
This SaaS sprawl leads to the growth of many APIs operating within an organisation without centralised IT governance. 2. Visibility Challenges and Security Blind Spots Besides this, it is challenging for the security teams to discover and keep track of all APIs across the SaaS environment where each app hosts.
.. Alex Rivers.
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Shadow APIs and the Invisible Risk in SaaS Environments

Shadow APIs—untracked, undocumented, and often insecure—have become the top hidden threat in today's SaaS ecosystems, putting data and compliance at risk. - www.ibtimes.co.uk