What Is Shadow API?
In the simplest terms, a shadow API, also known as undocumented API, is an API that exists and operates outside the official, monitored channels within an organization. It may be created by well-meaning developers to speed up their work, or it could be a remnant from previous software versions.
Shadow APIs can serve a practical purpose in organizations. They can be used to test new features or updates, facilitate internal operations, or as a workaround for system limitations. However, their existence is often unknown to the IT department or the company’s security team. This lack of visibility and governance presents significant challenges and risks, which we will delve into later in this guide.
The term ‘shadow API’ is derived from shadow IT, a familiar concept in the IT world. Shadow IT refers to the use of any software, applications, or services without the explicit approval or knowledge of the IT department. Both phenomena are a result of the fast pace of technological advancement and the increasing demand for agility in business operations.
This is part of a series of articles about data security.
The Role of Shadow APIs in an Organization
Shadow APIs play a significant role in many organizations. They often emerge as a solution to a problem, providing functionality that is missing from the official APIs, or simply making certain tasks easier or more efficient.
For instance, a developer might create a shadow API to retrieve data from a third-party service, bypassing the official API that doesn’t provide that specific functionality. Or, a business unit might use an undocumented API to extract specific data from a system, circumventing the official API that only allows bulk data extraction.
However, while these undocumented APIs can provide short-term benefits, they also introduce long-term risks. Without proper governance and monitoring, they can expose an organization to security vulnerabilities, data breaches, and compliance issues.
Risks Associated with Shadow APIs
Security Risks
Perhaps the most significant risk posed by shadow APIs is security. Since these APIs operate outside the standard IT and security processes, they often lack the security measures that are applied to the official APIs. This can leave them vulnerable to attacks, such as SQL injection, CSRF, and XSS, which can lead to data breaches and other serious security incidents.
For instance, if a shadow API doesn’t properly validate and sanitize the incoming requests, an attacker could exploit this vulnerability to gain unauthorized access to sensitive data or even take control of the system. The damage could be enormous, especially if the shadow API has access to critical business data or systems.
Compliance and Data Privacy Concerns
Shadow APIs operate outside the official IT and security processes, and so they might not comply with organizational guidelines with respect to security and compliance. This can expose the organization to compliance issues and penalties, especially if a data breach occurs due to a shadow API.
A specific risk associated with shadow APIs is data privacy. Since these APIs often bypass the official channels, they might not adhere to the organization’s data privacy policies and regulations. This can lead to unauthorized access, use, or disclosure of sensitive personal data, which can result in hefty fines and reputational damage.
For instance, a shadow API might be used to extract sensitive customer data from a system, without proper authorization or logging. This could expose the organization to legal actions and penalties if it violates data privacy laws such as GDPR or CCPA.
Operational Risks
Finally, shadow APIs can also introduce operational risks. Since these APIs are usually developed and used without the knowledge or approval of the IT department, they might not adhere to the organization’s operational standards and best practices. This can lead to system instability, performance issues, and other operational problems.
For example, a poorly designed shadow API might consume excessive system resources, slowing down an entire system. Or, it might cause data inconsistencies if it doesn’t properly handle data transactions.
Learn more in our detailed guide to data loss prevention
Detecting Shadow APIs
The first step towards managing shadow APIs is to identify their presence in your system. There are several signs that can indicate the presence of shadow APIs. Unexpected data breaches or leaks, unexplained increase in data usage, and unaccounted network traffic are some of the most common signs. Moreover, if your employees are using applications that have not been approved by the IT department, there is a high chance that they are utilizing shadow APIs.
In addition, if you notice an increase in the number of calls to a particular API endpoint, especially from unapproved applications, it could mean that there are shadow APIs present in your system.
A key method for identifying shadow APIs is to monitor your network traffic. By keeping a close eye on your network traffic, you can identify any unusual activity that could indicate the presence of shadow APIs.
Best Practices to Prevent Shadow APIs
1. Developing and Enforcing API Governance Policies
One of the most effective ways to prevent the occurrence of shadow APIs is to develop and enforce API governance policies. These policies should clearly define who can create APIs, how they should be created, and how they should be used.
The policies should also outline the process for approving new APIs and the consequences for creating or using APIs without approval. Additionally, these policies should be regularly reviewed and updated to keep up with the evolving API landscape.
2. Regular API Inventory and Auditing
API inventory and auditing involves documenting and reviewing all the APIs in your system on a regular basis. The purpose of this exercise is to identify any APIs that have not been approved by the IT department and to ensure that all approved APIs are being used properly.
During the auditing process, it is important to check for any changes in the API usage patterns. Any unexplained changes could indicate the presence of shadow APIs. Moreover, it is also beneficial to use automated tools for API inventory and auditing as they can help you save time and improve accuracy.
3. Implementing API Gateways
API gateways act as a single entry point for all API calls, making it easier to monitor and control API usage. By using API gateways, you can ensure that all API calls are authenticated and authorized before they are allowed to access your system. This can help you prevent unauthorized access to your system and reduce the risk of shadow APIs.
4. Encouraging Open Communication and Disclosure
Often, shadow APIs are created because the IT department is not aware of the needs of other departments. By fostering open communication, you can ensure that the IT department understands the needs of other departments and can provide them with the necessary APIs.
At the same time, it is beneficial to foster a culture of transparency and open communication within your organization, while educating users about the impact shadow APIs can have on the organization as a whole. This can encourage your employees to disclose any APIs that they are using without the knowledge of the IT department.
