TL;DR: APIs now sit at the centre of AI-enabled application flows, and Probely says Snyk argues that neglecting them drives breach costs, downtime, regulatory exposure, and trust loss, while shadow APIs and prompt-injected AI calls widen the attack surface. The governance lesson is that API security is no longer just an AppSec problem; it is an identity, access, and lifecycle control problem.
Editorial analysis by NHI Mgmt Group, based on content published by Probely: “The Hidden Costs of Ignoring API Security”.
Key questions
Q: Where does API security fail when teams do not know all of their APIs?
A: It fails at the point where access paths become invisible.
Q: Why do APIs create a larger identity risk surface in AI-enabled environments?
A: APIs become the execution boundary for software agents, workflow automation, and backend services, so any overbroad token can reach multiple systems.
Q: What are the signs that API governance is failing at runtime?
A: Common signs include undocumented endpoints, duplicated ownership, inconsistent responses, rising retry loops, and frequent discovery of APIs that are not in the catalogue.
Practitioner guidance
- Build a complete API identity inventory Map every public, internal, shadow and third-party API to an owner, an authentication method and an access review cycle.
- Scope machine credentials to each API path Issue credentials and tokens with the smallest feasible scope for the specific API action, then revoke unused or overly broad credentials that can reach sensitive data or business functions.
- Test AI-connected APIs as privileged workflows Treat LLM-backed features and automated agents as callers that can trigger downstream API actions, and validate the full chain from prompt or event to data access, update or transaction.
Bottom line: Hidden APIs, shadow integrations and AI-connected workflows turn API exposure into a governance problem as much as a technical one.
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API security is now a governance problem, not a narrow AppSec task. The article correctly frames hidden API costs as operational, financial and reputational, but the deeper issue is control ownership. When APIs mediate access to data and actions, they become part of the identity plane, because every call is an access decision. Practitioners should manage APIs as governed access paths with explicit ownership.
A few things that frame the scale:
- AI-related credential leaks surged 81.5% year-over-year in 2025, with the surrounding AI infrastructure leaking 5x faster than core LLM providers, according to the State of Secrets Sprawl 2026.
- Secrets management is a top five cybersecurity priority for only 33% of organisations, behind cloud security (45%), API security (42%), and endpoint security (36%), according to the 2024 State of Secrets Management Survey.
A question worth separating out:
Q: Should teams treat API security as part of IAM or AppSec?
A: Treat it as both, but with identity governance at the centre. AppSec covers testing and vulnerability management, while IAM controls who or what can call an API, under what scope and for how long. In modern environments, especially AI-enabled ones, separating those responsibilities leaves an accountability gap that attackers can exploit.
👉 Read our full editorial: Hidden API costs show why API security is now identity security