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API insecurity and automated abuse by bots responsible for up to 11.8% of cyber events and losses globally
Bot-related security incident count rose 88% in 2022 and 28% in 2023
Insecure APIs result in up to $12 billion more in losses than they did in 2021
@Thales Imperva, a Thales company, the cybersecurity leader that protects critical applications, APIs, and data, anywhere at scale, releases the Economic Impact of API and Bot Attacks report. The analysis of more than 161,000 unique cybersecurity incidents and investigates the rising global costs of vulnerable or insecure APIs and automated abuse by bots, two security threats that are increasingly interconnected and prevalent. The report estimates that API insecurity and bot attacks result in up to $186[1] billion for businesses around the world.
The report is based on a study conducted by the Marsh McLennan Cyber Risk Intelligence Center which found that larger organizations were statistically more likely to have a higher percentage of security incidents that involved both insecure APIs and bot attacks. Enterprises with revenues of more than $1 billion were 2-3x more likely to experience automated API abuse by bots than small or mid-size businesses. The study suggests that large companies are particularly vulnerable to security risks associated with automated API abuse by bots because of complex and widespread API ecosystems that often contain exposed or insecure APIs.
Enterprises rely heavily on APIs to enable seamless communication between diverse applications and services. Data from Imperva Threat Research finds that the average enterprise managed 613 API endpoints in production last year. That number is growing rapidly as businesses face mounting pressure to deliver digital services with greater agility and efficiency.
Due to this increased reliance and their direct access to sensitive data, APIs have become attractive targets for bot operators. In 2023, automated threats accounted for 30% of all API attacks, according to data from Imperva Threat Research. Today, automated API abuse by bots costs organizations up to $17.9 billion of losses annually. As the number of APIs in production multiplies, cybercriminals will increasingly use automated bots to find and exploit API business logic, circumvent security measures, and exfiltrate sensitive data.
It's imperative that businesses across the world address the security risks posed by insecure APIs and bot attacks, or they face a substantial economic burden, says Nanhi Singh, General Manager of Application Security at Imperva, a Thales company. The interconnected nature of these threats necessitates that companies take a holistic approach, integrating comprehensive security strategies for both bot and API attacks.
Some of the key trends identified in the report include:
Increased API adoption and usage is growing the attack surface: The rapid adoption of APIs, inexperience of many API developers, and lack of collaboration between security and development teams has led insecure APIs to now result in up to $87 billion of losses annually, a $12 billion increase from 2021.
Bots negatively impact organizations' bottom line: The widespread availability of attack tools and generative AI models has enhanced bot evasion techniques and enabled even low-skilled attackers to launch sophisticated bot attacks. Up to $116 billion of losses annually can be attributed to automated attacks by bots.
API and bot-related security incidents are becoming more frequent: In 2022, API-related security incidents rose by 40%, and bot-related security incidents spiked by 88%. These increases were fueled by a rise in digital transactions, the expanding use of APIs, and geopolitical tensions like the Russia-Ukraine conflict. In the following year 2023, as digital traffic began to stabilize and the pandemic-driven surge in internet activity subsided, the frequency of these incidents moderated. API-related security incidents grew by 9%, while bot-related security incidents jumped by 28%. The overall upward trend in attacks highlights the growing persistence and frequency of these threats.
Insecure APIs and bot attacks pose a significant threat to large enterprises: Companies with revenue of at least $100 billion are most likely to suffer security incidents related to insecure APIs or bot attacks. These threats constitute up to 26% of all security incidents experienced by such businesses.
Countries around the globe are vulnerable to API and bot attacks: Brazil experienced the highest percentage of events related to insecure APIs or bot attacks, with the threats accounting for up to 32% of all observed security incidents. This was closely followed by France (up to 28%), Japan (up to 28%), and India (up to 26%). While the percentage of events attributed to API and bot-related security incidents was lower in the United States, 66% of all reported events related to vulnerable APIs or automated abuse by bots occurred within the country.
Reliance on APIs will continue to grow exponentially, driving connections to generative AI applications and large language models, adds Singh. At the same time, generative AI will also empower cybercriminals to create sophisticated bots at an accelerated and alarming rate. As API ecosystems expand and bots become more advanced, organizations should anticipate a significant rise in the economic impact of automated API abuse by bots unless proactive measures are taken.
Additional Information:
Download a copy of the The Economic Impact of API and Bot Attacks report for additional insights on the business impact of API and bot-related security incidents.
See how Imperva Advanced Bot Protection and API Security can protect websites, applications, and APIs from automated attacks and without affecting the flo
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