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Configuring Microsoft Entra for Enhanced API Security

Reco Security Experts
July 1, 2024
July 2, 2024

In today's digital landscape, where data breaches and cyber threats loom large, securing APIs (Application Programming Interfaces) is paramount for businesses to safeguard their sensitive information and maintain customer trust. Microsoft Entra API Management offers robust features and capabilities to enhance API security, ensuring that only authorized users and applications can access protected resources. In this comprehensive guide, we will delve into configuring Microsoft Entra API Management, explicitly focusing on enhancing API security to mitigate potential risks effectively.

Understanding API Security

APIs serve as the backbone of modern applications, enabling seamless communication and data exchange between various software components. However, this interconnectedness also exposes APIs to security vulnerabilities, making them prime targets for cyberattacks. Common API security threats include:

  1. Unauthorized Access: Hackers attempt to gain unauthorized access to APIs to steal sensitive data or disrupt services.
  2. Data Breaches: Inadequate security measures may lead to data breaches, exposing confidential information to malicious actors.
  3. Injection Attacks: Attackers exploit vulnerabilities in API inputs to inject malicious code or execute unauthorized commands.
  4. Denial of Service (DoS) Attacks: Malicious users overwhelm APIs with a high volume of requests, causing service disruptions for legitimate users.

To address these threats effectively, organizations must implement robust security measures throughout the API lifecycle, from design and development to deployment and management.

Leveraging Microsoft Entra API Management for Enhanced Security

Microsoft Entra API Management is a comprehensive solution that enables organizations to publish, secure, manage, and analyze APIs in a scalable and efficient manner. By leveraging Entra API Management, businesses can enforce authentication, authorization, encryption, and other security mechanisms to protect their APIs and data from unauthorized access and cyber threats.

Configuring Microsoft Entra API Management for Enhanced Security

1. Authentication and Authorization

Authentication and authorization are fundamental aspects of API security, ensuring that only authenticated and authorized users or applications can access protected resources. 

Entra API Management supports various authentication mechanisms, including:

  • OAuth 2.0: Implement OAuth 2.0 authentication to enable secure authorization delegation and token-based authentication for API access.
  • API Keys: Issue API keys to registered developers or applications to authenticate and control access to APIs.
  • Client Certificates: Client certificates are used to authenticate devices or applications accessing APIs, providing an additional layer of security.

The image above shows the OAuth setup steps for the encryption process in Microsoft Office 365. This process explains the API keys and client certificates.

This image shows setting up the OAuth in Office 365. The next step is to click on app registrations on the left. This explains how to set up the application registrations for devices.

The image above shows how Owned applications will be selected by clicking on new registration.

The image above shows the name field, where you can enter a descriptive name. We have entered the Active Directory Pro Toolkit. Leave “accounts in this organizational directory only” selected and click register.

The image above will take you to the overview section of the newly registered app. Under the essentials section, copy the application (client) ID and the directory (tenant) ID. Leave this window open, as you will need to make changes to the app registration.

The image above shows how to paste the application (client) ID and the directory (tenant) ID into your app’s settings.

As per the image above, you will select OAuth_365 in the authentication type drop down menu. Paste the application (client) ID in the client ID field. Paste the directory (tenant) ID into the tenant ID field.

As per the image above, you will go back to Azure Active Directory from the left menu and click on certificates & secrets. Click on a new client secret.

In this image, under add a client secret, enter a description (for example, Active Directory Pro Toolkit Secret). Select an expiration period. 6 months is recommended, but you can go longer. Click add.

This image shows a copy of the value, not the Secret ID that is displayed. It’s important to do this quickly as you will not be able to see the value again.

In this image, you will go back to your application and paste the value into the secret field.

In this image, you will go back to Azure Active Directory and click on authentication on the left menu.

In this image, under advanced settings, toggle the slider to Yes under allow public client flows. Click save.

The image above guides you to click on add permission to set up the appropriate permissions for setting up the API keys.

This image shows the click on Add permission to add permission to set up the keys.

In this image, click on Microsoft Graph. Request API permissions will be displayed. Click on application permissions to display the API permission.

Configure authentication settings in Entra ID API Management to enforce strict access controls and validate the identity of API consumers before granting access to protected resources.

2. Rate Limiting and Quotas

Rate limiting and quotas help prevent abuse and misuse of APIs by limiting the number of requests that users or applications can make within a specified timeframe. Entra API Management allows you to configure rate limits and quotas based on various criteria, such as subscription keys, IP addresses, or user identities. By enforcing rate limits and quotas, organizations can prevent DoS attacks, manage API usage, and ensure fair access for all consumers.

3. Encryption and Data Protection

Encrypting data in transit and at rest is essential for maintaining the confidentiality and integrity of sensitive information transmitted via APIs. Entra API Management supports SSL/TLS encryption to secure data in transit, ensuring that communication between clients and APIs remains encrypted and protected from eavesdropping or tampering. Additionally, encryption mechanisms, such as Azure Key Vault, should be implemented to securely store and manage encryption keys, secrets, and certificates used by APIs for data encryption and decryption.

4. Role-Based Access Control (RBAC)

Role-based access control (RBAC) enables organizations to define fine-grained access policies and permissions based on users' roles and responsibilities. Entra IDAPI Management integrates with Entra ID to enforce RBAC policies, allowing administrators to grant or revoke permissions to manage APIs, policies, and configurations. By implementing RBAC, organizations can enforce least privilege access principles, mitigate insider threats, and ensure proper governance and compliance.

Steps to Assign the Role:

  • Sign in to the Microsoft Purview compliance portal as a global admin from compliance.microsoft.com
  • Navigate to the Permissions section.
  • Assign the Compliance Administrator role to the relevant user account if that is what you need to set up the policy.

This image shows the process of assigning the policy to the Microsoft compliance admin center. Here, each admin can give another user a role to access services in Office 365 and Entra ID.

This image shows when the policy is assigned.

5. API Threat Protection

API threat protection helps detect and mitigate common security threats and attacks targeting APIs, such as SQL injection, cross-site scripting (XSS), and parameter tampering. Entra IDAPI Management offers built-in and customizable policies to enforce security controls and inspect incoming API requests for malicious payloads or suspicious behavior. Implement API threat protection policies, such as input validation, content inspection, and anomaly detection, to identify and block malicious traffic, safeguarding APIs against cyber threats and vulnerabilities.

6. Monitoring and Logging

Monitoring and logging are essential for detecting security incidents, analyzing API usage patterns, and maintaining compliance with regulatory requirements. Entra ID Management provides comprehensive monitoring and logging capabilities, allowing administrators to monitor API performance, track usage metrics, and analyze security events in real-time. Configure logging settings to capture detailed information about API requests, responses, errors, and security events, enabling proactive threat detection, incident response, and forensic analysis.

Best Practices for API Security with Entra ID API Management

In addition to configuring security features and mechanisms, following best practices is crucial for ensuring the effectiveness of API security with Entra ID API Management:

  1. Implement Defense in Depth: Adopt a layered approach to security by implementing multiple security controls and mechanisms throughout the API lifecycle.
  2. Stay Updated: Keep Entra ID API Management and associated components, such as API gateways and security plugins, up to date with the latest patches and security updates.
  3. Regular Security Audits: Conduct regular security audits and assessments to identify and remediate security vulnerabilities and compliance gaps.
  4. Employee Training: Provide comprehensive training and awareness programs to educate employees and developers about API security best practices and emerging threats.
  5. Incident Response Plan: Develop and maintain an incident response plan to effectively respond to security incidents, minimize impact, and restore normal operations.


Enhancing API security is essential for safeguarding sensitive data, protecting against cyber threats, and maintaining the trust of customers and stakeholders. By leveraging Microsoft Entra ID API Management and following best practices for API security, organizations can implement robust security controls, enforce access policies, and mitigate potential risks effectively. Configuring authentication and authorization, rate limiting and quotas, encryption and data protection, RBAC, API threat protection, and monitoring and logging will help businesses strengthen their API security posture. This ensures the integrity, confidentiality, and availability of their APIs and data assets in today's dynamic and evolving threat landscape.

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