Introduction

APIs (Application Programming Interfaces) are the backbone of modern cloud infrastructures, enabling seamless communication between applications, services, and third-party systems. Just as you protect your password on social media, APIs must be safeguarded to prevent unauthorized access to sensitive data and services. API security ensures that API keys, authentication tokens, and API calls are not misused, just like how personal credentials protect user identities.

APIs play a critical role in mobile applications, IoT devices, cloud-based services, and microservices architectures, making API security a top priority for IT teams. The world of AI is built on API, and in a multi-cloud environment, where applications operate across AWS, Azure, Google Cloud, and private data centers, managing API security becomes even more complex due to different authentication models, varying access controls, and fragmented security policies.

A key challenge in multi-cloud API security is securing North-South and East-West traffic

• ‍North-South APIs handle traffic between external clients and cloud services, requiring strong authentication (OAuth, JWT), rate limiting, and encryption to prevent unauthorized access.
• ‍East-West APIs manage internal communication between microservices, databases, and cloud workloads. While often overlooked, these APIs must be secured to prevent the lateral movement of attackers within cloud environments.

Additionally, cloud migration, modern DevOps practices, and the continuous evolution of APIs increase the risk of misconfigurations and security gaps. CISOs must adopt Zero Trust principles, API gateways, encryption, threat detection, and continuous monitoring to secure API communication across multi-cloud environments while ensuring business continuity and compliance.

Challenges of Securing APIs in Multi-Cloud Environments

APIs play a crucial role in multi-cloud architectures, facilitating seamless communication across cloud platforms. To understand it better, consider a multi-cloud environment as a global airport system where different airlines (cloud providers) operate under their own rules and regulations. APIs act as air traffic controllers, ensuring smooth communication between flights (applications), security checkpoints (authentication/authorization), and baggage handling systems (data transfer). Without standardized coordination, flights might collide, passengers (data) could end up at the wrong destination, and security breaches could occur.

Similarly, in a multi-cloud setup, APIs ensure data moves securely and efficiently between clouds, applications, and users, preventing miscommunication, unauthorized access, and system failures. As pointed out in the Gartner report, “By 2027, more than 70% of enterprises will use industry cloud platforms to accelerate their business initiatives, up from less than 15% in 2023”. This means that as organizations move more workloads and sensitive data to the cloud, securing distributed infrastructures becomes even more complex. In 2025, cloud security must evolve to counter increasingly sophisticated threats, requiring innovative strategies to maintain resilience and trust.

The  OWASP API highlights the top security challenges faced by the CIOs:

Inconsistent Security Policies Across Cloud Providers

‍Each cloud provider has different security configurations, making it challenging to enforce uniform API authentication, authorization, and monitoring. Without a standardized approach, misconfigurations arise, leading to security gaps. For example, a company using AWS Cognito for authentication but Azure API Management for access control may face issues syncing user permissions across platforms.

Expanded Attack Surface Due to Multi-Cloud API Exposure

‍Multi-cloud environments increase API exposure, making them vulnerable to broken object-level authorization (API1:2019) and user authentication flaws (API2:2019). Attackers can exploit improper access controls to manipulate API requests and gain unauthorized data access. Facebook's API vulnerability allowed attackers to extract personal data from millions of users by exploiting broken authentication tokens.

Difficulty in Monitoring & Managing API Traffic

‍A lack of centralized logging and monitoring (API10:2019) makes it challenging to detect API misuse, injection attacks (API8:2019), or data breaches in real time. APIs are often spread across multiple clouds, fragmenting security insights.  In May 2021, the Peloton API flaw exposed sensitive user data due to improper logging and misconfigured access controls.

Broken Object Level Authorization

‍APIs often expose endpoints that handle object identifiers, creating a broad attack surface. Without proper authorization checks, attackers can access or manipulate data they shouldn't. In 2019, an API vulnerability in an Indian government healthcare app allowed unauthorized users to access the personal health records of other patients by modifying the user ID in API requests.

Broken Authentication

‍Incorrect implementation of authentication mechanisms can allow attackers to compromise tokens or exploit flaws to impersonate other users, undermining overall API security.

Broken Object Property Level Authorization

‍This issue arises from inadequate authorization validation at the object property level, leading to unauthorized information exposure or manipulation.

Unrestricted Resource Consumption

‍APIs require resources like bandwidth, CPU, and memory. Without limitations, excessive requests can lead to denial of service or increased operational costs. An e-commerce API suffered a denial-of-service (DoS) attack when automated bots flooded the system with excessive API requests, slowing down services for real users.

Broken Function Level Authorization

‍Complex access control policies and unclear separation between administrative and regular functions can result in authorization flaws, allowing attackers to access unauthorized resources or functions.‍

Unrestricted Access to Sensitive Business Flows

‍APIs that expose critical business processes without safeguards can be exploited, leading to automated abuse and potential business harm. Ticket scalpers exploit API to automate bulk purchases, denying fair access to real fans.

Server-Side Request Forgery (SSRF)

‍This occurs when an API fetches a remote resource without validating user-supplied URLs, enabling attackers to make requests to unintended destinations.

Security Misconfiguration

‍Misconfigurations at any level of the API stack can provide attackers with unauthorized access or system knowledge.

Improper Inventory Management

‍Lack of proper documentation and management of API versions and endpoints can expose deprecated or unsecured APIs to attackers.

Unsafe Consumption of APIs

‍Integrating with third-party APIs without proper validation can introduce vulnerabilities, especially if those APIs are compromised or malicious.

Key Principles of API Security in Multi-Cloud Environments

Securing APIs across multiple cloud providers requires a robust approach to authentication, access control, encryption, monitoring, and compliance. Rupesh Chokshi, senior VP at Akamai, said, “Our research shows that API security has yet to become a key element in a comprehensive security strategy.” The report further mentions that “the top-ranked security priorities for CISOs over the next 12 months are  addressing generative AI-fueled threats (25.5%) and securing APIs (24.8%).”

Below are key principles that help ensure API security in multi-cloud environments:

Authentication and Authorization

Strong authentication protocols such as OAuth 2.0, OpenID Connect, and API keys ensure that only legitimate users and applications access APIs. Multi-cloud environments require federated identity management for seamless authentication across different cloud providers. Implement Zero Trust principles, requiring verification at every step. For instance, a banking API using OAuth 2.0 prevents unauthorized third-party applications from accessing user financial data.

Encryption

To prevent data interception, all API traffic should be encrypted using Transport Layer Security (TLS 1.2 or 1.3). Additionally, encrypting data at rest and in transit across different clouds ensures confidentiality. Securely store sensitive API keys and credentials using secrets management tools like AWS Secrets Manager, Azure Key Vault, or HashiCorp Vault. Google Cloud healthcare API encrypts patient records to comply with HIPAA regulations, ensuring security across AWS, Azure, and GCP.

Principle of Least Privilege (PoLP)

APIs should grant the minimum necessary permissions required for users or services to perform their tasks. Role-based and attribute-based access controls (RBAC & ABAC) enhance security.

Example: A logistics API restricts warehouse staff from viewing shipment data while allowing managers to update records.

Monitoring and Auditing

Continuous API monitoring, logging, and auditing help detect and respond to security threats. Security Information and Event Management (SIEM) solutions and AI-powered anomaly detection can improve threat visibility. In March and April 2024, Roku suffered two credential-stuffing attacks, compromising 591,000 customer accounts. While no sensitive financial data was accessed, hackers used stolen credentials to log in to nearly 400 accounts and make unauthorized purchases. Roku responded by resetting passwords, reversing fraudulent charges, and enforcing Two-Factor Authentication (2FA) for all accounts to enhance security.

Rate Limiting and Throttling

Implementing rate limits prevents DDoS (Distributed Denial of Service) attacks and API abuse. Throttling ensures fair usage and prevents excessive requests from overwhelming cloud resources. Many travel booking APIs enforce rate limits to block bot-driven bulk reservations.

API Gateways for Centralized Access Control

API gateways like AWS API Gateway, Kong, and Apigee act as a security layer, enforcing authentication, rate limiting, and policy enforcement across multi-cloud APIs. Businesses can use Apigee to manage API access consistently across AWS and Google Cloud.

Policies and Compliance with Industry Standards

Adhering to NIST, ISO 27001, GDPR, HIPAA, and OWASP API Security Top 10 ensures APIs meet regulatory and industry security requirements.

Secure API Development Practices

Embedding security into the API development lifecycle with DevSecOps, automated security testing (SAST, DAST, SCA), and secure coding practices reduce vulnerabilities. Finastra saw a 51% increase in API traffic, but malicious traffic surged by 211%, highlighting attackers' growing focus on exploiting APIs for sensitive data. To address this, Finastra integrated Salt into its CI/CD pipeline and API lifecycle, ensuring robust security. The platform's hybrid approach helped Finastra meet data privacy requirements by keeping sensitive data within its environment.

Best Practices for Securing APIs in Multi-Cloud Environments

Implement API Gateways for Centralized Control

API gateways serve as a security and traffic management layer, enforcing authentication, rate limiting, and access control across multi-cloud APIs.

Recommended Tools: AWS API Gateway, Apigee, Kong, MuleSoft, Azure API Management

Standardize Security Policies Across Cloud Platforms

Consistency in security policies ensures uniform access control, authentication, and encryption across multiple cloud vendors. Using Identity Federation (SAML, OAuth 2.0, OpenID Connect) allows seamless user authentication.

Recommended Tools: Okta, Ping Identity, AWS IAM, Azure Active Directory (AD), Google Cloud IAM

Use Secure API Design Practices

• Input Validation: Prevent SQL injection, NoSQL injection, and XML external entity attacks (XXE) by validating and sanitizing user inputs.
• Rate Limiting: Mitigates DDoS attacks and API abuse by restricting excessive requests.

Recommended Tools: Cloudflare API Shield, AWS WAF, Azure DDoS Protection

Employ Zero Trust Principles

Apply Zero Trust security by enforcing continuous authentication, micro-segmentation, and least privilege access to APIs.

Recommended Tools: Zscaler, Palo Alto Prisma Access, Illumio, FortiClient

Integrate DevSecOps for Secure API Development

Embedding security in the CI/CD pipeline ensures APIs are secure before deployment. Implement automated security testing using:

• Static Application Security Testing (SAST) for code vulnerabilities
• Dynamic Application Security Testing (DAST) for runtime threats
• Software Composition Analysis (SCA) for open-source dependency risks

Recommended Tools: GitHub Advanced Security, Snyk, Checkmarx, OWASP ZAP

Utilize AI/ML for Real-Time Threat Detection

AI-driven anomaly detection and behavior analysis can identify API abuse, credential stuffing, and automated bot attacks in real time.

Recommended Tools: Microsoft Defender for APIs, Darktrace, CrowdStrike Falcon

Case Study: Lemonade’s Successful Implementation of API Security with Orca Security

Lemonade, a cloud-native insurance company, faced the challenge of securing its APIs while maintaining a fast and efficient DevOps workflow. As a financial technology company handling sensitive customer data, Lemonade needed a robust security framework that provided visibility, compliance enforcement, and proactive risk mitigation without disrupting its cloud operations.

Challenges in API Security

• ‍Lack of Visibility – Lemonade needed full visibility into its multi-cloud environment to identify misconfigurations, vulnerabilities, and security gaps in APIs.
• ‍Compliance Requirements – The company had to meet industry regulations and compliance mandates, including GDPR, SOC 2, and ISO 27001, ensuring secure API management.
• ‍Operational Efficiency – Traditional agent-based security tools were cumbersome, affecting system performance and slowing down the DevOps workflow. Lemonade sought a solution that integrated seamlessly without interfering with continuous development cycles.

Solution: Implementing Orca Security for API Protection

Lemonade adopted Orca Security’s agentless cloud security platform, which provides:

• ‍100% API Visibility – Orca’s platform scanned all cloud assets, including APIs, without deploying agents, ensuring complete monitoring across AWS environments.
• ‍Risk Prioritization – By leveraging machine learning and contextual risk analysis, Orca identified and ranked API security threats, allowing Lemonade to focus on the most critical vulnerabilities. 
• ‍Seamless Compliance Enforcement – The platform provided continuous compliance monitoring, generating audit-ready reports for SOC 2, GDPR, and ISO 27001 without additional overhead.
• ‍Minimal Operational Disruption – Since Orca's platform operated without requiring agent installations, Lemonade maintained high-speed deployments while improving security.

Results Achieved

• ‍Stronger API Security – Lemonade gained real-time insights into potential API vulnerabilities, reducing the risk of data breaches. Lemonade successfully reduced its at-risk items to just one-sixth of the previous level. "Now, we can keep them under control through continuous monitoring," says Jaffe, CISO at Lemonade.
• ‍Improved Compliance – Automated compliance monitoring enabled the company to demonstrate security controls effectively to auditors.
• ‍Operational Efficiency – Adopting agentless security streamlined security management, allowing the DevOps team to focus on innovation without security bottlenecks.

By integrating Orca Security, Lemonade successfully fortified its API security while maintaining agility and compliance, ensuring the safety of customer data in its cloud-native ecosystem.

Case Study: Delta Dental of California Data Breach and API Security Upgrade

In May 2023, Delta Dental of California experienced a significant data breach due to a zero-day vulnerability (CVE-2023-34362) in the MOVEit Transfer software. This cyberattack, carried out by the Clop ransomware group, impacted nearly 7 million individuals, exposing Social Security numbers, financial details, and insurance policy numbers.

Challenges Faced

• Vulnerability in Third-Party Software – The attack exploited a third-party file transfer tool, highlighting risks in external dependencies.
• Lack of Real-Time API Security – Insufficient API monitoring allowed malicious activities to go undetected for an extended period.
• Inadequate Access Controls – Weak identity and access management (IAM) policies exposed critical data.
• Data Exposure Risks – Sensitive data needed stronger encryption and least privileged access to prevent unauthorized retrieval.
• Complex Multi-Cloud Security – Managing security across multiple cloud environments (on-premises, Azure, and hybrid setups) added to the challenge.

Security Enhancements and Tools Implemented

After the breach, Delta Dental adopted a multi-layered API security approach, integrating Microsoft Azure solutions, Zero Trust principles, and AI-driven threat detection tools.

API Security and Threat Protection

Tool Used: Salt Security – Deployed AI-driven API behavior analysis to detect anomalies and prevent data leakage.

Tool Used: Akamai WAAP – Implemented Web Application and API Protection (WAAP) to block API abuse and credential stuffing attacks.

Identity and Access Management (IAM) Enhancement

Tool Used: Okta IAM & MFA – Strengthened identity verification and enforced Multi-Factor Authentication (MFA) to reduce unauthorized API access.

Zero Trust Security Model

Framework Used: Microsoft Zero Trust Architecture – Applied Zero Trust principles to ensure all API requests were authenticated, authorized, and encrypted before execution. (Source)

Hybrid Cloud Security and API Management

Framework Used: Microsoft Azure Stack HCI – Adopted Azure Stack HCI to secure hybrid cloud workloads, ensuring API security policies remained consistent across on-premises and cloud environments.

Tool Used: Microsoft Defender for Cloud – Used Defender for Cloud to provide continuous API security monitoring and threat detection.

Advanced Threat Detection and Response

Tool Used: Wiz Cloud Security Posture Management (CSPM) – Identified misconfigurations and enforced security compliance across Azure, AWS, and on-prem infrastructure.

Tool Used: Imperva Next-Gen Web Application Firewall (WAF) – Deployed API protection rules to block injection attacks and unauthorized access attempts.

Results and Outcomes

• Reduction in API Security Vulnerabilities – Automated real-time threat detection significantly lowered risk.
• Enhanced Compliance – Aligned security controls with HIPAA, NIST, and ISO 27001 frameworks.
• Faster Threat Detection & Response – Reduced incident response time by integrating AI-based API monitoring tools.
• Stronger API Access Controls – Role-based access controls (RBAC) and MFA enforcement minimized unauthorized access.

Emerging Trends in API Security for Multi-Cloud Environments

As multi-cloud adoption grows, organizations must continuously adapt their API security strategies. Here are key emerging trends shaping API security in distributed cloud environments:

Increasing Adoption of API Mesh Architectures

API mesh architectures are becoming a preferred approach for managing security and observability in large-scale, multi-cloud environments. Unlike traditional API gateways, API meshes provide:

• Decentralized Security Controls: Every API call is secured at the service level using mutual TLS (mTLS), identity-based policies, and fine-grained authentication.
• Granular Traffic Management: Service-to-service communications are managed with rate limiting, retry policies, and circuit breakers to prevent API abuse and attacks.
• Enhanced Observability: Organizations can monitor API interactions across multiple cloud providers, reducing blind spots in API traffic.

Example: Istio, a popular service mesh, helps organizations enforce security policies, authenticate API calls, and encrypt data in transit within Kubernetes-based multi-cloud architectures.

Use of AI for API Behavior Analysis

Traditional security tools rely on predefined rules, but AI-driven security solutions can detect and mitigate API threats in real-time. AI is being used to:

• Detect Anomalous API Behavior: Machine learning models analyze API request patterns, identifying suspicious activity such as bot-driven attacks, credential stuffing, or data scraping.
• Automate Threat Response: AI-powered security platforms can dynamically adjust API rate limits or block malicious API calls without human intervention.
• Enhance API Authentication: AI can help prevent API key misuse and unauthorized access by assessing behavioral context, such as user location, request frequency, and device type.

Example: Cloudflare and Google Cloud use AI-based anomaly detection to flag API abuse and prevent data leaks in multi-cloud environments.

Advances in Secure API Integration for Hybrid and Edge Computing Environments

As businesses extend their applications to edge computing and hybrid cloud environments, API security must adapt to these dynamic infrastructures. Key developments include:

• 5G-Enabled API Security: With the rise of edge computing and 5G, organizations are embedding security controls directly into APIs to prevent unauthorized access at the network edge.
• Zero Trust API Access: APIs adopt Zero Trust models, where no API request is inherently trusted, and continuous authentication is enforced.
• Confidential Computing for Secure API Transactions: APIs handle sensitive data, such as financial transactions, leverage secure enclaves, and use hardware-based encryption to prevent unauthorized data exposure.

Example: The U.S. Department of Defense uses Zero Trust API security to protect edge devices and autonomous systems in its military networks.

These trends highlight the evolving nature of API security in multi-cloud environments, emphasizing the need for automation, AI-driven insights, and Zero Trust principles to safeguard distributed architectures.

Conclusion

API security in multi-cloud environments is more critical than ever as organizations increasingly rely on distributed cloud services to drive innovation. With APIs as the backbone of modern applications, securing them requires a comprehensive approach that includes strong authentication and authorization (OAuth 2.0, OpenID Connect), encryption (TLS), least privilege access, continuous monitoring, and centralized management via API gateways. Implementing security best practices—such as Zero Trust principles, secure API design, and DevSecOps—ensures that APIs remain resilient against evolving threats.

Looking ahead, emerging trends like API mesh architectures, AI-driven threat detection, and secure integrations for edge computing will shape the future of API security. Organizations must prioritize proactive security measures as attack surfaces grow to prevent API vulnerabilities from being exploited.

Now is the time to take action

Assess your current API security posture, implement industry best practices, and leverage advanced tools to safeguard your APIs across multi-cloud environments. Security is not a one-time effort—it’s a continuous process. Strengthen your API defenses today to ensure a secure and scalable digital future.

Ready to fortify your multi-cloud environment? At Cogent Infotech, we specialize in comprehensive API security strategies, Zero Trust implementations, and AI-powered threat detection. Our consultants guide you every step of the way to ensure robust, scalable protection for your critical applications.

‍Let’s talk about how we can help safeguard your APIs and accelerate secure innovation across diverse cloud platforms.