Traceable Releases 2025 State of API Security Report: API Breaches Persist as Fraud, Bot Attacks, and Generative AI Increase Risks

57% of Organizations Suffer API-related Breaches; Fraud, Bot Attacks, and Generative AI Applications Exploit API Vulnerabilities as Traditional Defenses Fail

Traceable AI, the industry's leading API security company, today released its second annual research report—the 2025 Global State of API Security. The findings demonstrate that organizations are failing to protect their APIs despite persistent breaches and increased awareness of security risks. This comprehensive study, incorporating insights from over 1,500 IT and cybersecurity experts across the US, UK, and EMEA, reveals fundamental weaknesses in API security strategies and tracks how these issues have shifted since our inaugural report.

Key findings examine the most pressing API security issues organizations face today: increasing bot attacks and fraud, risks from third-party APIs, and the new security implications of generative AI applications.

Download the full report for in-depth analysis.

Key Findings Include:

1. API-Related Data Breaches Continue to Wreak Havoc: 57% of organizations suffered an API-related data breach in the past two years, with a staggering 73% of these experiencing three or more incidents. Even more concerning, 41% endured five or more breaches, revealing a systemic failure in API defenses and a clear need for investment in purpose-built API security solutions.
   
2. Traditional Security Solutions Fail to Deliver API Protection: Despite deploying an array of security tools—from legacy WAFs to CDNs and Gateways—only 19% of organizations rate their defenses as highly effective. Moreover, 53% admit that traditional solutions like WAFs and WAAPs are ineffective at identifying or preventing fraud at the API layer.
   
3. Generative AI Applications Create New Risks: 65% of organizations state that generative AI applications pose a serious to extreme risk to APIs. 60% state that the additional API integrations required for generative AI applications expand their organization’s attack surface; the same percentage cite concerns about sensitive data exposure and unauthorized access.
   
4. Bot Attacks and Fraud are Rampant: 53% of organizations have experienced one or more bot attacks involving their APIs, and 44% say that bot mitigation is a top challenge. Fraud is equally concerning, emerging as the second most prevalent cause of API-related data breaches among survey respondents.
   
5. Third-Party APIs Are a Hidden Danger: Organizations now use an average of 131 third-party APIs, up slightly from last year's 127. Yet, only 16% have a “high ability” to mitigate these external risks, leaving a vast attack surface greatly exposed.

"API breaches are rampant, and the industry is in denial,” said Richard Bird, Chief Security Officer of Traceable. “Organizations keep deploying the same solutions—Web Application Firewalls, API gateways, and lifecycle tools—yet only a small percentage report any real success. This cognitive dissonance is a ticking time bomb. The truth is, these traditional defenses are failing, and the more companies rely on them, the more they expose themselves to devastating attacks. We’re also seeing a surge in bot attacks, increasing instances of API fraud, and new vulnerabilities emerging from the rapid adoption of generative AI applications. Companies must confront the uncomfortable truth: their current strategies are inadequate. Without a fundamental shift in how they secure APIs, breaches and their consequences will continue to escalate.”

Traceable conducts this annual research to provide organizations with an objective assessment of API security risks and trends. By tracking these patterns and emerging threats, we aim to offer security leaders the knowledge needed to make informed decisions and prioritize the most important security challenges. Our commitment is to ensure that as APIs continue to be central to business operations, organizations have the insights they need to protect their critical assets.

Download the full 2025 State of API Security report today.

About Traceable

Traceable’s intelligent and context-aware solution powers complete API security, API discovery and posture management, API security testing, attack detection and threat hunting, and attack protection anywhere your APIs live. Traceable enables organizations to minimize risk and maximize the value that APIs bring their customers. To learn more about how API security can help your business, book a demo with a security expert.

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