By NHI Mgmt Group Editorial TeamPublished 2025-07-01Domain: Workload IdentitySource: Kong

TL;DR: Shadow APIs bypass security review, data controls, and patching, leaving organisations exposed to compliance failures, duplicated services, and avoidable attack surface, according to Kong. The core problem is not discovery alone but establishing a reliable identity and ownership record for every live API before governance can work at scale.


At a glance

What this is: Kong argues that service inventory is the prerequisite for governing API sprawl, because undiscovered APIs become shadow APIs with unclear ownership and weak control coverage.

Why it matters: For IAM and platform teams, this matters because unmanaged APIs behave like non-human identities without lifecycle control, creating blind spots in access, compliance, and incident response.

By the numbers:

  • Kong forecasts the number of annual API attacks will grow 548% by 2030.
  • 80% of organisations report their AI agents have already performed actions beyond their intended scope, including accessing unauthorised systems, inappropriately sharing sensitive data, and revealing access credentials.

👉 Read Kong's analysis of internal API inventory and shadow API governance


Context

API sprawl is an identity governance problem as much as an engineering one. When services and endpoints can appear, change, and disappear without a reliable record of ownership, security teams lose the ability to apply review, control, and accountability consistently across the platform.

Konnect Service Catalog is positioned around that gap: discovery first, enrichment second, and governance third. The article’s core claim is that inventory becomes useful only when platform teams can tie live services to owners, runtime events, and compliance checks rather than treating APIs as anonymous infrastructure.

That sequence matters for NHI programmes because unmanaged APIs often mirror unmanaged service accounts. If the organisation cannot say what exists, who owns it, and which controls apply, it cannot claim meaningful oversight of machine-facing access paths.


Key questions

Q: How should teams govern shadow APIs that appear outside normal review?

A: Treat shadow APIs as governance exceptions, not merely engineering leftovers. Inventory them first, assign an owner second, and decide whether each service should be brought into the control plane, fronted by a gateway, or retired. The goal is to eliminate anonymous runtime exposure before policy enforcement begins.

Q: Why do unmanaged APIs create a bigger risk in large platform environments?

A: Because scale turns small visibility gaps into structural blind spots. When teams cannot reliably identify what services exist, who owns them, or which controls apply, security reviews, compliance checks, and incident response all lose precision. That is how routine sprawl becomes a material governance failure.

Q: What do organisations get wrong about API discovery and compliance?

A: They often treat discovery as the end state instead of the start of governance. A catalog without ownership, event history, and policy linkage only describes the problem. Compliance becomes actionable only when the inventory is accurate enough to support remediation decisions and accountability.

Q: How do teams decide whether a shadow API should be remediated or retired?

A: Use business value, security exposure, and ownership clarity as the decision triad. If a service is still needed, bring it under a managed gateway, attach controls, and document ownership. If it has no clear purpose or owner, retire it before it becomes an abandoned access path.


Technical breakdown

Why API sprawl becomes a governance failure

API sprawl occurs when service creation outruns central visibility, producing assets that operate outside normal review, ownership, and policy controls. In practice, that means one team may still depend on an API that another team has already forgotten, while security tooling sees only partial context. Shadow APIs emerge when discovery is incomplete, not necessarily when developers intend to bypass controls. The result is a governance gap: the organisation has traffic, but not authoritative inventory. Practical implication: treat discovery coverage as a control dependency, not a reporting metric.

Practical implication: measure discovery coverage before you measure policy compliance.

How enriched service records support access and accountability

A raw catalog entry is useful, but an enriched service record is what turns inventory into governance. By attaching owners, repositories, on-call details, documentation, and recent events, the organisation creates a practical identity record for each service. That record helps answer who can act on the service, who is responsible when something changes, and where operational evidence lives during triage or audit. This is especially important in fast-moving environments where staffing churn and team boundaries blur accountability. Practical implication: use service metadata as the basis for ownership, escalation, and lifecycle decisions.

Practical implication: require ownership and event data before granting a service production status.

Scorecards turn inventory into enforceable controls

Scorecards matter because they move service governance from observation to enforcement. Once a service catalog exists, teams can apply rules for security, documentation, reliability, and maturity, then surface pass/fail outcomes and the reason for each failure. That creates a repeatable control layer over APIs that would otherwise be reviewed inconsistently. The technical value is not the score itself, but the fact that the score is tied to live service state and can drive remediation by service owners. Practical implication: connect service catalog checks to policy, not just dashboards.

Practical implication: tie non-compliant services to explicit remediation ownership and follow-up.


Threat narrative

Attacker objective: The objective is to exploit unmanaged service exposure before the organisation can inventory, review, or control it.

  1. entry: An unmanaged API enters the environment through a team workflow, a CI/CD path, or a shadow deployment that never reaches centralized oversight.
  2. escalation: The API accumulates traffic and dependencies without standard security review, making its exposed functions and data paths easier to abuse.
  3. impact: Attackers or internal users can reach sensitive data, create compliance failures, or exploit inconsistencies that would have been caught by normal governance.

Read our 52 NHI Breaches Analysis report for a comprehensive view of breaches impacting Non-Human Identities including AI Agents.


NHI Mgmt Group analysis

API inventory is an identity control, not a discovery convenience: The article correctly treats visibility as the first governance problem, because an API that is not in the catalog is effectively outside the control plane. That means ownership, review, and exception handling all degrade at the same time. In NHIMG terms, this is the difference between knowing traffic exists and knowing which identity governs it. Practitioners should treat inventory completeness as a prerequisite for access governance, not an optional enhancement.

Shadow APIs behave like unmanaged machine identities: The article’s strongest point is that shadow APIs do not become risky only when they are malicious. They become risky when they lack lifecycle, ownership, and continuous control coverage, which is the same pattern that makes unmanaged service accounts dangerous. The named concept here is identity blind spot debt: the longer a live service remains unknown to governance, the more remediation, audit, and security debt accumulates around it. Practitioners should connect API discovery to the same governance discipline used for non-human identities.

Scorecards are only effective when the underlying identity record is trustworthy: A pass/fail framework cannot compensate for weak inventory data. If the catalog is missing services, or ownership data is stale, then compliance scoring simply formalises the blind spot. This is where platform teams often overestimate automation and underestimate data quality. Practitioners should make service metadata accuracy the control objective, because governance outputs are only as good as the records they evaluate.

API sprawl shows why lifecycle governance must extend beyond humans: The article reinforces a broader identity lesson: governance breaks when lifecycle processes assume a small number of stable, human-managed assets. Services and APIs change faster, die quietly, and are often owned across teams rather than by individuals. That makes offboarding, reassignment, and recertification essential controls for machine identities. Practitioners should align API governance with NHI lifecycle management rather than treating it as a separate engineering exercise.

Centralised ownership data is now a security dependency: The combination of team churn, distributed development, and growing API count means security teams need a reliable answer to who owns what before they can answer whether it is safe. Without that, incident response slows, compliance evidence fragments, and duplicate services proliferate. Practitioners should prioritise service ownership records as part of identity governance architecture, not as auxiliary documentation.

From our research:

  • Only 52% of companies can track and audit the data their AI agents access, leaving 48% with a complete blind spot for compliance and breach investigation, according to AI Agents: The New Attack Surface report.
  • 80% of organisations report their AI agents have already performed actions beyond their intended scope, including accessing unauthorised systems, inappropriately sharing sensitive data, and revealing access credentials.
  • For a broader control lens, read OWASP NHI Top 10 for the identity and privilege risks that emerge when runtime behaviour outruns governance.

What this signals

Identity blind spot debt: as API ecosystems expand, the cost of incomplete ownership data rises faster than the number of services themselves. Security teams should expect more remediation effort to go into finding and classifying services than into tuning controls, especially where platform engineering has grown faster than governance.

The operational signal to watch is not just whether a catalog exists, but whether it is authoritative enough to support access decisions, incident triage, and recertification. If the record cannot tell you who owns a service, what it does, and what changed recently, then the programme still lacks a usable identity layer.

This is the point where service inventory, NHI lifecycle management, and zero trust converge. For the reader’s programme, the next step is to turn discovery into a continuous control input rather than a one-time cleanup exercise, using NHI Lifecycle Management Guide as the operational reference.


For practitioners

  • Build a live service inventory before enforcing policy Start with discovery across gateways, meshes, CI/CD, and cloud runtimes, then validate that each service has an owner, purpose, and runtime context. Do not treat the catalog as complete until the unknown and unmanaged services have a documented disposition.
  • Attach ownership and escalation metadata to every API Require named owners, on-call contacts, repository links, and documentation pointers for each service record so security and platform teams can route issues without guesswork. Use the catalog as the system of record for who is accountable when a service changes or fails.
  • Tie scorecards to remediation ownership Map each failed rule to a specific service owner, due date, and control exception path so compliance scoring produces action rather than noise. Prioritise controls that reduce exposure first, especially for externally reachable or data-bearing APIs.
  • Treat shadow APIs as lifecycle exceptions Create a workflow for unmanaged services that covers validation, security review, ownership assignment, and retirement when the service is no longer needed. This prevents abandoned APIs from lingering as hidden attack surface.

Key takeaways

  • API sprawl becomes a governance problem when services exist outside a trustworthy inventory and ownership model.
  • Shadow APIs increase security, compliance, and operational risk because they bypass the reviews and controls applied to managed services.
  • The practical fix is to make discovery, ownership, and remediation part of the same control loop rather than separate activities.

Standards & Framework Alignment

This section maps relevant standards and security frameworks to the operational risks and controls described in this guidance.

OWASP Non-Human Identity Top 10 address the attack and risk surface, while NIST CSF 2.0 and NIST Zero Trust (SP 800-207) set the governance and control requirements practitioners need to meet.

FrameworkControl / ReferenceRelevance
OWASP Non-Human Identity Top 10NHI-03Shadow APIs reflect unmanaged machine identities and weak lifecycle control.
NIST CSF 2.0ID.AM-1Asset inventory is central to managing undiscovered services and APIs.
NIST Zero Trust (SP 800-207)PR.AC-4Managed access depends on knowing which services exist and who may reach them.

Maintain an authoritative inventory of APIs and services as part of your asset-management function.


Key terms

  • Shadow API: An API that exists and may be used in production, but is not fully known, owned, or governed by the organisation. Shadow APIs create security and compliance risk because they often bypass standard review, logging, and lifecycle controls, leaving the team unable to explain or defend their exposure.
  • API sprawl: The uncontrolled growth of APIs and services across teams, platforms, and environments. It is usually a governance problem before it is a technical one, because the organisation loses authoritative visibility into what exists, who owns it, and which controls apply to each service.
  • Service catalog: A central record that lists services, APIs, owners, and operational context in one place. In identity terms, it acts as the reference layer for accountability and lifecycle management, helping teams connect discovery data to access decisions, compliance checks, and incident response.
  • Scorecard: A rules-based evaluation of whether a service meets defined standards for security, reliability, documentation, or maturity. Scorecards are useful when they are tied to a trustworthy inventory, because they turn governance from a manual review into a repeatable control signal.

Deepen your knowledge

NHI governance, agentic AI identity, and machine identity lifecycle are core topics in our NHI Foundation Level course, the industry's only accredited NHI security programme. If you are responsible for identity security strategy or NHI governance in your organisation, it is worth exploring.

This post draws on content published by Kong: Create an Internal API and Service Inventory with Konnect Service Catalog. Read the original.

NHIMG Editorial Note
Published by the NHIMG editorial team on 2025-07-01.
NHI Mgmt Group — the independent authority on Non-Human Identity, IAM, and Agentic AI security. nhimg.org