CVE-2025-2905 is a critical XML External Entity (XXE) vulnerability identified in the gateway component of the WSO2 API Manager. This vulnerability arises from improper restriction of XML external entity references (CWE-611), where the system fails to adequately validate or restrict user-supplied XML input embedded in crafted URL paths. The XML parser processes this input without sufficient safeguards, allowing an unauthenticated remote attacker to exploit the XML parser's external entity resolution feature. Exploitation can lead to unauthorized disclosure of sensitive files on the server's filesystem or cause denial-of-service (DoS) conditions. The impact varies depending on the Java Development Kit (JDK) version in use: on systems running JDK 7 or early JDK 8, attackers can retrieve full file contents, whereas on later JDK 8 versions and newer, only the first line of a file may be exposed due to enhanced parser protections. Additionally, attackers can deploy DoS payloads such as the "Billion Laughs" attack to exhaust system resources and disrupt service availability. The vulnerability requires no authentication or user interaction, making it highly exploitable remotely. The CVSS v3.1 score of 9.1 reflects its critical severity, with high impact on confidentiality and availability, and low attack complexity. No known exploits are currently reported in the wild, but the potential for severe impact on API management infrastructure is significant given the central role of WSO2 API Manager in enterprise environments.

For European organizations, the exploitation of CVE-2025-2905 could have severe consequences. WSO2 API Manager is widely used to manage, secure, and mediate APIs that connect internal and external systems, including critical business applications and data services. Unauthorized file disclosure could expose sensitive configuration files, credentials, or intellectual property, leading to data breaches and compliance violations under GDPR and other regulations. The DoS potential threatens service continuity, risking operational disruptions and financial losses. Given the unauthenticated nature of the attack, threat actors could target exposed API gateways to gain reconnaissance or disrupt services without prior access. This vulnerability could also facilitate lateral movement or further exploitation within compromised networks. European organizations in sectors such as finance, healthcare, telecommunications, and government, which rely heavily on API integrations, are particularly at risk. The criticality of API infrastructure in digital transformation initiatives amplifies the potential impact on business operations and trust.

To mitigate CVE-2025-2905, European organizations should immediately apply any available patches or updates from WSO2 once released. In the absence of patches, organizations should implement the following specific measures: 1) Disable or restrict XML external entity processing in the XML parsers used by the WSO2 API Manager gateway component, leveraging parser configuration options to disallow external entity resolution. 2) Employ input validation and sanitization on all XML inputs, especially those received via URL paths, to detect and block malicious payloads. 3) Use Web Application Firewalls (WAFs) with custom rules to detect and block XXE attack patterns targeting the API gateway. 4) Monitor API gateway logs for anomalous XML payloads or repeated failed parsing attempts indicative of exploitation attempts. 5) Restrict network access to the API gateway to trusted sources and implement network segmentation to limit lateral movement if compromise occurs. 6) Upgrade Java runtimes to the latest supported versions with improved XML parser security features. 7) Conduct security testing and code reviews focused on XML handling components to identify and remediate similar weaknesses. These targeted actions go beyond generic advice by focusing on parser configuration, input validation, and network controls specific to the WSO2 API Manager environment.