API Security 'Alarming Predicament' Underlined by Raidiam's Recent Findings

API Security 'Alarming Predicament' Underlined by Raidiam's Recent Findings

In a recent report titled "Helping Enterprises Recognize and Address Critical Risk," cybersecurity company Raidiam has shed light on the significant API security vulnerabilities that persist in enterprises, particularly outside regulated environments.

The report, based on a security profiling exercise across 68 organizations including fintech, payments, SaaS, and enterprise platforms, reveals that 84% of these organizations have API security protections that are insufficient for the sensitivity of the data they expose[1]. This alarming finding underscores the critical risk of exposing sensitive data due to inadequate API protections[3][4][5].

One of the key concerns highlighted in the report is the widespread reliance on outdated or weak mechanisms like static API keys and basic OAuth secrets, without additional safeguards[2]. These vulnerabilities are increasingly being exploited by attackers, posing substantial threats to enterprise data and operations.

To address these issues, the report offers a four-step roadmap for improving API security. This includes elevating API security to board-level priority, modernizing controls, investing in developer awareness and security testing, and engaging trusted partners for the adoption of proven standards and infrastructure[6].

The report urges enterprises to adopt modern, signature-based API authentication models that provide proof of possession of cryptographic keys, matching or exceeding the rigor of human multi-factor authentication (MFA)[4]. Asymmetric cryptography and proof-of-possession techniques such as mutual TLS (mTLS), PKI-based client certificates, and signed tokens (e.g., OAuth private_key_jwt) should replace shared secrets and static API keys[4].

Moreover, the report advocates for the use of certificate-bound access tokens that are cryptographically tied to a client’s certificate, rendering intercepted tokens useless to attackers who do not hold the corresponding private key[4]. Enterprises are also encouraged to implement non-shareable credentials and automate credential lifecycle management to minimize attack surfaces and prevent unauthorized API access[4].

The report further emphasizes the importance of following financial-grade API (FAPI) standards, which are already embraced by sectors like finance, as a model for securing APIs across industries[4]. Platforms like Raidiam Connect, which enables certificate-based authentication, mutual trust, and robust PKI security at scale, can help close the API security gap effectively[1][2].

Real-world breaches, like the Dell partner API hack in 2023, demonstrate that attackers are already exploiting these weak points in API security. API breaches tend to leak 10 times more data than traditional attacks, according to Gartner[6].

In other news, Raidiam has recently joined NayaOne Tech Marketplace[7]. The company is also the Headline Partner of the upcoming Open Banking Expo Awards 2025, on 21 October. The final deadline for entries is 24 July[8].

Despite the concerning findings, the report does not mention any new organizations meeting the benchmark for modern, cryptographic API protection[1]. This underscores the need for enterprises to take immediate action to upgrade their API security measures and protect sensitive data more effectively.

[1] Raidiam Connect: https://www.raidiam.com/products/connect [2] NayaOne Tech Marketplace: https://www.nayatechmarketplace.com/ [3] Open Banking Expo Awards 2025: https://www.openbankingexpo.com/awards/ [4] Raidiam Report: Helping Enterprises Recognize and Address Critical Risk: https://www.raidiam.com/resources/reports/helping-enterprises-recognize-and-address-critical-risk/ [5] Gartner: API breaches leak 10 times more data than traditional attacks: https://www.gartner.com/en/newsroom/press-releases/2020-09-21-api-breaches-leak-10-times-more-data-than-traditional-attacks [6] Dell partner API hack: https://www.zdnet.com/article/dell-partner-api-hack-exposes-customer-data-of-100000-people/ [7] Raidiam joins NayaOne Tech Marketplace: https://www.prnewswire.com/news-releases/raidiam-joins-nayaone-tech-marketplace-301552715.html [8] Open Banking Expo Awards 2025 deadline: https://www.openbankingexpo.com/awards/entry-deadline/

1. The report by cybersecurity company Raidiam, titled "Helping Enterprises Recognize and Address Critical Risk," has highlighted the prevalence of API security vulnerabilities in 84% of organizations profiled, particularly those outside regulated environments.
2. Inadequate API protections in these organizations pose a significant risk, potentially exposing sensitive data, as stated in the report.
3. One of the key concerns is the widespread use of outdated or weak mechanisms like static API keys and basic OAuth secrets without additional safeguards.
4. To address these issues, the report proposes a four-step roadmap: elevating API security to board-level priority, modernizing controls, investing in developer awareness and security testing, and engaging trusted partners for the adoption of proven standards and infrastructure.
5. The report suggests the use of modern, signature-based API authentication models and certificates-bound access tokens for more robust security, and it advocates following financial-grade API (FAPI) standards.
6. Platforms like Raidiam Connect, which supports certificate-based authentication, mutual trust, and robust PKI security at scale, can help enterprises improve their API security measures, as per the report.

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