CVE-2025-2905 is a critical vulnerability classified under CWE-611 (Improper Restriction of XML External Entity Reference) affecting WSO2 API Manager versions from initial releases up to 4.2.0. The root cause is the improper configuration of the XML parser, which fails to restrict the resolution of XML External Entities (XXE). This allows attackers to submit crafted XML payloads that the server processes without adequate validation or restriction, enabling the resolution of external entities. Exploiting this flaw, a remote attacker with no authentication can read arbitrary files on the server’s filesystem, potentially exposing sensitive configuration files, credentials, or other confidential data. Additionally, the attacker can trigger denial-of-service (DoS) conditions by causing the XML parser to consume excessive resources or enter infinite loops through malicious entity definitions. The vulnerability has a CVSS v3.1 base score of 9.1, reflecting its critical severity with network attack vector, low attack complexity, no privileges required, no user interaction, high confidentiality impact, no integrity impact, and high availability impact. Although no public exploits have been reported yet, the widespread use of WSO2 API Manager in enterprise API management makes this a significant risk. The vulnerability affects multiple major versions, indicating that many deployments could be vulnerable if not updated or mitigated. The improper XML parser configuration is a common security oversight in middleware products that handle XML input, emphasizing the need for secure defaults and explicit disabling of external entity processing.

For European organizations, the impact of CVE-2025-2905 can be severe. WSO2 API Manager is widely used in enterprises for managing APIs, which are critical for digital services, integrations, and business operations. Exploitation could lead to unauthorized disclosure of sensitive internal files, including credentials, configuration files, or intellectual property, resulting in data breaches and compliance violations under GDPR. The ability to cause denial-of-service attacks can disrupt business continuity, affecting service availability and potentially causing financial and reputational damage. Given the critical nature of APIs in digital transformation initiatives across Europe, such disruptions can have cascading effects on partner ecosystems and customer-facing applications. Organizations in sectors such as finance, telecommunications, government, and healthcare, which rely heavily on secure API management, are particularly vulnerable. The lack of authentication requirement lowers the barrier for attackers, increasing the likelihood of exploitation if mitigations are not applied promptly. Additionally, the exposure of sensitive files could facilitate further attacks, including lateral movement and privilege escalation within compromised networks.

To mitigate CVE-2025-2905, European organizations should immediately review and update their WSO2 API Manager deployments to the latest patched versions once available. In the absence of patches, administrators should disable XML External Entity processing in all XML parsers used by the product by configuring parser features such as 'disallow-doctype-decl' and disabling external entity resolution. Implement strict input validation and sanitization for all XML inputs to the API Manager. Network-level controls such as web application firewalls (WAFs) should be configured to detect and block malicious XML payloads indicative of XXE attacks. Monitoring and logging should be enhanced to detect unusual API request patterns or errors related to XML parsing. Conduct thorough security assessments and penetration testing focusing on XML processing components. Additionally, organizations should enforce the principle of least privilege on the API Manager server to limit file system access and isolate critical services to minimize impact in case of exploitation. Regularly update and audit third-party components and dependencies to ensure secure configurations. Finally, staff training on secure XML handling and awareness of XXE risks can help prevent misconfigurations in future deployments.