Just days ago, a supply-chain cyberattack through Salesloft’s Drift chatbot forced companies like Zscaler and Cloudflare into immediate damage control—revoking OAuth tokens, rotating API keys, and scrambling to shore up access controls. This isn’t isolated—it’s emblematic of a new era where API integrations, not just internal systems, are the frontline in cyber defense.

When boards think of cybersecurity, most focus on ransomware, phishing, or insider threats. But the risk that often slips under the radar is APIs—Application Programming Interfaces.

At first glance, APIs might seem like a tech-only issueBut make no mistake: APIs are now the arteries of your digital business, and when they are compromised, the lifeblood of your enterprise — customer data, financial transactions, intellectual property — is at risk. Think of APIs like a building’s plumbing: invisible but absolutely essential. If a pipe bursts, it doesn’t matter how impressive the lobby looks—the damage is real.

Why Boards Should Pay Attention to APIs

APIs are not just lines of code. They enable apps, partners, and platforms to communicate and share data seamlessly. Every time your business:

• Connects a mobile app with internal systems,
• Partners with fintech companies,
• Allows customers to manage their accounts independently,
• Or powers cloud-based services,

APIs are working behind the scenes and in fact expand the attack surface for cyber threat.

What was once safely locked behind firewalls is now more exposed—making APIs both incredibly useful and a significant security challenge. The rise of Generative AI has further fueled API use – for example, majority of Anthropic‘s revenue comes from APIs.

Here’s what this means for the boardroom:

• Financial Risk: A hacked API can lead to fraud or theft, as seen in banks and telecom firms.
• Regulatory Risk: APIs handle sensitive personal data, so breaches can result in fines under regulations like GDPR, CCPA, or India’s DPDP Act.
• Reputation Risk: When customer data leaks, headlines won’t blame an “API misconfiguration.” They’ll say the company “failed to protect its data”.

Why APIs Often Fly Under the Radar

Despite their critical role, APIs rarely make it to board-level reports. Here’s why:

• They Multiply Quietly: Every new digital initiative adds more APIs, leading to “API sprawl” with hundreds of connections—many untracked.
• Poor Management: Many organizations lack a comprehensive list of their APIs. Hidden “shadow APIs” exist without proper oversight or security, creating serious vulnerabilities.
• Beyond Tech Risks: APIs can be exploited in sneaky, technically valid ways that firewalls can’t detect—like pulling more data than authorized!
• Lack of Metrics: While breaches are reported, few boards get clear insights into how mature or effective their API security really is.

In short, APIs are like hidden trapdoors in your digital infrastructure — you don’t know they exist until someone falls through.

Real-World Wake-Up Calls

Even large, well-resourced companies aren’t immune:

• Optus: Hackers exploited an exposed API to steal data from 10 million customers.
• Panera Bread: An unsecured API leaked millions of customer records and went unnoticed for months.
• T-Mobile (multiple times) : Attackers repeatedly exploited API flaws to access sensitive customer information.

If it can happen to them, it can happen to any organization.

Attacks on APIs and web applications targeting financial services companies surged by 65% in just one year. Since APIs are used everywhere, no industry can escape from exposure to this risk.

So, What Should Boards Be Asking?

Here are five essential questions every board should be asking to hold their teams accountable:

1. Do we have a complete inventory of all APIs? Who owns them, and which ones pose the highest risks?
2. Are we aligned with the OWASP API Top 10 risks? Is our security program addressing API-specific threats, not just general application vulnerabilities?
3. Do we actively monitor for “shadow APIs”? What’s our process for identifying undocumented or forgotten endpoints?
4. Are APIs included in our third-party risk assessments? How do we evaluate the security of APIs used by vendors and partners?
5. How are API security breaches reported to the board? Do we have dashboards, metrics, or independent reviews in place?

From IT Detail to Boardroom Governance

API security can’t be left solely to IT teams. These are business risks impacting finances, compliance, and reputation. Boards should treat API governance with the same rigor as financial controls—with clear ownership, oversight, and regular audits.

Some forward-thinking boards already request internal audit teams to assess API governance and seek independent maturity reviews.

Final Thought

APIs are the foundation of today’s digital transformation. They enable customer experiences, partnerships, and innovation. But in the rush to connect everything, too many organizations have left the doors wide open.

Board members don’t need to know how to build APIs, but they must ensure these digital lifelines are properly managed and secured. Because today, the biggest cybersecurity threat lurking in your boardroom might not be ransomware or phishing—it could be your APIs.

How is YOUR board addressing this threat of API-ocalypse ?