🛡️ Security Intermediate 16 min read

What is API Security? Understanding and Preventing API Vulnerabilities

Learn how APIs work, why they are prime targets for attackers, and how to protect against common API vulnerabilities like BOLA, injection attacks, and broken authentication.

Published: December 15, 2025 • Updated: December 15, 2025
API SecurityWeb SecurityOWASPBOLAAuthenticationAuthorizationCybersecurity

Application Programming Interfaces (APIs) have become the backbone of modern software, enabling everything from mobile apps to cloud services to communicate and share data. However, this connectivity comes with significant security risks. API vulnerabilities are now the leading cause of data breaches, with incidents like the recent 700Credit breach—which exposed 5.8 million records through an API flaw—demonstrating the devastating consequences of inadequate API security.

In this comprehensive guide, you will learn what APIs are, how they work, the most common API security vulnerabilities, and practical steps to protect your applications and data. Whether you are a developer, security professional, or simply want to understand how your personal information might be at risk, this guide will give you the knowledge you need.

What is an API?

An Application Programming Interface (API) is a set of rules and protocols that allows different software applications to communicate with each other. Think of an API as a waiter in a restaurant: you (the client application) tell the waiter (the API) what you want, the waiter takes your request to the kitchen (the server), and then brings back your food (the data or service response).

APIs are everywhere in modern technology. When you check the weather on your phone, the app uses an API to fetch data from a weather service. When you log into a website using your Google or Facebook account, APIs enable that authentication. When a dealership runs a credit check, they use APIs to communicate with credit reporting services like 700Credit.

Types of APIs

Understanding the different types of APIs helps contextualize their security challenges:

  • REST APIs: The most common type, using HTTP methods (GET, POST, PUT, DELETE) to perform operations. Most web and mobile applications use REST APIs.
  • GraphQL APIs: A newer approach that allows clients to request exactly the data they need, reducing over-fetching but introducing unique security considerations.
  • SOAP APIs: An older, more rigid protocol often used in enterprise environments, particularly financial services.
  • Internal APIs: Used within an organization to connect internal systems and services.
  • Partner APIs: Shared with specific business partners, like the integration between 700Credit and automotive dealerships.
  • Why API Security Matters

    APIs have become the primary attack surface for modern applications. According to security researchers, API attacks have increased by over 600% in recent years. There are several reasons why APIs are such attractive targets:

  • Direct data access: APIs provide direct pathways to sensitive data, bypassing user interfaces and their built-in protections.
  • Automation potential: Unlike manual attacks through web forms, API attacks can be fully automated, allowing attackers to exfiltrate massive amounts of data quickly.
  • Complexity: Modern applications may have hundreds of API endpoints, making it difficult to secure all of them consistently.
  • Third-party exposure: APIs that connect to partners and vendors extend the attack surface beyond the organization's direct control.
  • OWASP API Security Top 10

    The Open Web Application Security Project (OWASP) maintains a list of the most critical API security risks. Understanding these vulnerabilities is essential for anyone involved in building, securing, or using API-connected services.

    1. Broken Object Level Authorization (BOLA)

    BOLA is the most common and dangerous API vulnerabilityVulnerability🛡️A weakness in software, hardware, or processes that can be exploited by attackers to gain unauthorized access or cause harm., ranking #1 on the OWASP API Security Top 10. This is exactly the type of vulnerability that enabled the 700Credit data breach.

    BOLA occurs when an API fails to verify that the user making a request has permission to access the specific object (data record) being requested. In the 700Credit case, the API did not validate that consumer reference IDs belonged to the requesting party, allowing attackers to access any customer record by simply changing the ID number in their requests.

    Example of vulnerable code:

    // VULNERABLE: No authorization check
    app.get("/api/customer/:id", (req, res) => {
      const customer = database.getCustomer(req.params.id);
      return res.json(customer); // Anyone can access any customer!
    });

    Secure implementation:

    // SECURE: Verify user has access to requested resource
    app.get("/api/customer/:id", authenticate, (req, res) => {
      const customer = database.getCustomer(req.params.id);
      
      // Verify the authenticated user has permission
      if (customer.dealerId !== req.user.dealerId) {
        return res.status(403).json({ error: "Access denied" });
      }
      
      return res.json(customer);
    });

    2. Broken Authentication

    APIs with weak or improperly implemented authentication mechanisms allow attackers to impersonate legitimate users or bypass authentication entirely. Common issues include:

  • Weak or predictable API keys
  • Missing token expiration
  • Tokens transmitted over unencrypted connections
  • No rate limiting on authentication attempts
  • 3. Injection Attacks

    When APIs accept user input without proper validation and sanitization, attackers can inject malicious code. This includes SQL injection, NoSQL injection, command injectionCommand Injection🛡️A security vulnerability that allows attackers to execute arbitrary operating system commands on the host system through a vulnerable application., and LDAP injection. Proper input validation and parameterized queries are essential defenses.

    4. Excessive Data Exposure

    APIs often return more data than necessary, relying on the client application to filter out sensitive fields. Attackers who intercept API responses can access data that was never intended to be exposed. APIs should implement response filtering at the server level, returning only the minimum data required.

    5. Lack of Rate Limiting

    Without rate limiting, APIs are vulnerable to brute force attacks, denial of service, and mass data scraping. In the 700Credit breach, the attackers were able to exfiltrate 20% of customer data over five months—proper rate limiting and anomaly detection could have detected and stopped this activity much sooner.

    API Security Best Practices

    Protecting APIs requires a comprehensive approach that addresses authentication, authorization, data protection, and monitoring. Here are the essential practices every organization should implement:

    Implement Strong Authentication

    Use industry-standard authentication protocols like OAuthOAuth🛡️An open standard authorization protocol that allows applications to access user resources without exposing passwords, using tokens instead of credentials. 2.0 with OpenID Connect. Implement short-lived access tokens (15-60 minutes) with refresh tokenRefresh Token🛡️A long-lived credential used to obtain new access tokens without requiring the user to re-authenticate, enabling persistent application access. rotation. Never use API keys as the sole authentication method for sensitive operations. Consider mutual TLS (mTLS) for high-security scenarios.

    Enforce Object-Level Authorization

    Every API endpoint that accesses data must verify that the authenticated user has permission to access the specific resource being requested. This check should happen on every request, not just at login. Implement attribute-based access control (ABAC) or role-based access control (RBAC) consistently across all endpoints.

    Validate All Input

    Never trust client input. Validate data types, lengths, formats, and ranges for all input parameters. Use allowlists rather than blocklists when possible. Sanitize input to prevent injection attacks. Implement schema validation for request bodies.

    Minimize Data Exposure

    Return only the data fields required for each operation. Never expose sensitive data like Social Security Numbers unless absolutely necessary. Implement field-level encryptionEncryption🛡️The process of converting data into a coded format that can only be read with the correct decryption key. for highly sensitive data. Use data masking for logging and debugging.

    Implement Rate Limiting and Throttling

    Set appropriate rate limits based on expected usage patterns. Implement different limits for different operations (higher for reads, lower for writes). Use exponential backoff for rate limit violations. Monitor for unusual patterns that might indicate an attack.

    Monitor and Log API Activity

    Comprehensive logging enables detection of attacks and forensic analysis after incidents. Log all API requests including timestamps, user identifiers, endpoints accessed, and response codes. Implement real-time alerting for suspicious patterns such as unusual access volumes or failed authentication attempts.

    API Security in Third-Party Integrations

    The 700Credit breach originated through a compromised integration partner, highlighting the critical importance of securing API connections with third parties. When you expose APIs to partners or consume APIs from vendors, you extend your security perimeter.

    Organizations should implement dedicated API gateways for partner connections, use separate credentials for each integration partner, monitor partner API usage patterns, and require immediate notification of security incidents affecting partner systems. Contractual requirements for security standards and breach notification are essential components of third-party API security.

    API Security Testing

    Regular security testing is essential for identifying vulnerabilities before attackers do. Key testing approaches include:

  • Automated scanning: Use API security scanners to identify common vulnerabilities automatically.
  • Penetration testing: Engage security professionals to manually test APIs for vulnerabilities.
  • Fuzz testing: Send malformed or unexpected data to APIs to identify input handling vulnerabilities.
  • Authorization testing: Systematically verify that authorization checks are enforced for all resources and operations.
  • Key Takeaways

    API security is not optional in today's connected world. As the 700Credit breach demonstrates, a single API vulnerability can expose millions of sensitive records. Remember these key points:

  • BOLA (Broken Object Level Authorization) is the #1 API vulnerability—always verify users have permission to access specific resources.
  • Authentication alone is not enough; authorization must be checked on every request for every resource.
  • Third-party integrations extend your attack surface—secure partner APIs as carefully as your own.
  • Rate limiting and monitoring can detect and stop attacks before massive data exfiltrationData Exfiltration📖The unauthorized transfer or theft of data from a computer or network, typically performed by attackers after gaining access to a system. occurs.
  • Regular security testing is essential to identify vulnerabilities before attackers do.
  • Keep Learning

  • What to Do After a Data Breach — Learn the essential steps to protect yourself when your personal information has been exposed.
  • Understanding Third-Party Risk — Discover how vendor and partner compromises can impact your security.
  • What is Two-Factor Authentication? — Understand how 2FA adds an extra layer of protection to your accounts.