Skip to content

Thought Leadership for Wholesale Change Agents

  • Articles
    • AI in Distribution
    • Digital Strategy
    • B2B eCommerce
    • Distribution Marketing
    • Distribution Sales Strategy
    • Distribution Technology
    • Distribution Industry News
    • Technology News
  • News
  • Programs
    • Upcoming Programs
    • On-Demand Programs
    • Wholesale Change Show
    • On-Demand Wholesale Change Shows
    • The Discerning Distributor
    • Calendar
  • Reports
  • Speaking
  • Software
Menu
  • Articles
    • AI in Distribution
    • Digital Strategy
    • B2B eCommerce
    • Distribution Marketing
    • Distribution Sales Strategy
    • Distribution Technology
    • Distribution Industry News
    • Technology News
  • News
  • Programs
    • Upcoming Programs
    • On-Demand Programs
    • Wholesale Change Show
    • On-Demand Wholesale Change Shows
    • The Discerning Distributor
    • Calendar
  • Reports
  • Speaking
  • Software
Join Our List
Home » Distribution Technology » The Hidden Dangers of Unauthorized APIs in Distribution Companies

Date

  • Published on: May 7, 2024

Author

  • Picture of Brian Hopkins Brian Hopkins

Related

Home Depot’s SRS Acquisition a Wake-Up Call for Distributors: Big Retailers Are Coming for Your Business

Unlocking the Power of AI: ARG Industrial’s Journey at DSG’s Applied AI for Distributors Event

4 Reasons Distributors Need a Solid Cybersecurity Plan Right Now

Share

Distribution Technology

The Hidden Dangers of Unauthorized APIs in Distribution Companies

I will start by saying I am not a CIO, nor do I pretend to be, but I have spoken to some really smart technology leaders, and they all believe this is a constant battle in their organizations.  

APIs (Application Programming Interfaces) have become essential connectors that allow different software systems to communicate and share data. For distribution companies, APIs are crucial for managing supply chains, tracking inventory and processing orders efficiently.  

However, as companies increasingly rely on APIs, a new threat has emerged: unauthorized APIs, also known as shadow APIs. These APIs operate without the knowledge or control of IT departments, and they can pose serious risks to your business if left unchecked. 

We are excited to have one of the nation’s most prominent cybersecurity authorities, Former White House CIO Theresa Payton, join us as a keynote speaker at Applied AI for Distributors, June 4-6 in Chicago. She will kick off the day on June 6 on the topic of “How AI, Deepfakes and ChatGPT Are Transforming Cybercrime – and What to Do About It.”  

The Risks of Unauthorized APIs for Your Distribution Business 

Unauthorized APIs can expose your company to dangers. One of the biggest concerns is data breaches. When APIs are created and used without proper security measures, they can become open doors for cybercriminals to access sensitive information, like customer data, supplier details, pricing information and more. It only takes once. This can lead to a loss of trust, damage to your reputation and legal consequences – don’t assume insurance is all you need. 

How Unauthorized APIs Get into the System  

These APIs can be introduced in several ways. Developers might integrate external APIs into applications to speed up development or add functionality without going through the proper channels of approval, often due to pressure to meet deadlines.  

Companies also frequently use third-party services that may themselves use APIs, which can become part of the company’s ecosystem. Over time, APIs that were once authorized can become deprecated but remain active within the system, known as “zombie APIs,” posing significant security risks if not effectively managed and decommissioned.  

In some cases, the sheer volume and complexity of API integrations across a large organization can lead to scenarios where not all APIs are adequately cataloged or monitored, inadvertently allowing unauthorized APIs to operate under the radar. Hackers love to exploit these forgotten endpoints since they are often exposed and unprotected. 

Detecting and Managing Unauthorized APIs  

API discovery tools can help you identify and catalog all the APIs being used across your organization. These tools scan your network and analyze traffic patterns to uncover hidden APIs. Once identified, API gateways can help you control and monitor access to your APIs. Gateways act as a single-entry point, ensuring that only approved APIs are used, and that access is granted based on predefined rules. Regular audits and usage policies are essential to detect any unusual activity and mitigate risks associated with unauthorized APIs. 

Best Practices for API Management  

To build a secure API environment, develop a unified API strategy that includes documentation, security, governance, compliance and monitoring. This strategy should provide clear guidelines for API development, deployment, and usage. Employee training is another critical aspect. By educating your team about the importance of following protocol and the risks associated with unauthorized APIs, you can create a culture of security awareness. As security threats evolve and business needs change, you must regularly assess and adapt your API strategies to stay ahead of potential vulnerabilities. 

Securing Your API Environment  

Managing unauthorized APIs is crucial for protecting the security and integrity of your network. By understanding the risks posed by these hidden APIs and implementing effective detection and management strategies, your company can safeguard your digital assets, protect against data breaches and ensure compliance.  

These examples serve as a reminder of the dynamic nature of cybersecurity and the need for constant innovation and vigilance. Embracing technology while understanding its risks will be crucial for protecting our digital infrastructures and ensuring our customers transact safely with us.  

Stay safe and informed! 

Our 2024 Applied AI for Distributors lineup is heating up fast. Hear from former White House CIO Theresa Payton and other industry experts in Chicago this summer. Do not miss this opportunity to learn how to protect your company. 

Register now for Applied AI for Distributors and take a proactive step towards securing your digital future. 

Brian Hopkins
Brian Hopkins

As Chief Operations Officer of a Distribution Strategy Group, I'm in the unique position of having helped transform distribution companies and am now collaborating with AI vendors to understand their solutions. My background in industrial distribution operations, sales process management, and continuous improvement provides a different perspective on how distributors can leverage AI to transform margin and productivity challenges into competitive advantages.

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Get inspired to act now. Get our content in your inbox 2x/week.

subscribe
Facebook-f Linkedin-in Twitter

Useful Links

  • About
  • Sponsorships
  • Consulting
  • Contact
  • About
  • Sponsorships
  • Consulting
  • Contact

Policies & Terms

  • Terms
  • Distribution Strategy Group Privacy Policy
  • Cookie Policy
  • Terms
  • Distribution Strategy Group Privacy Policy
  • Cookie Policy

Get In Touch

  • 303-898-8636
  • contact@distributionstrategy.com
  • Boulder, CO 80304 (MST/MDT)

© 2025 Distribution Strategy Group