Your Model Is Leaking: Covert Information Transfer through LLM Residual Streams

Abstract: Privacy-sensitive organizations may run LLMs in restricted or air-gapped environments while exporting selected diagnostic artifacts. We show that a compromised runtime component can hide sensitive information in intermediate activations that are allowed to leave the restricted environment. An offline observer can recover this information with a simple linear decoder. The attack requires no model retraining or weight modification, no attacker-controlled egress, and no control over the recorder or transfer process. We introduce a residual-stream covert-channel attack that maps messages to codewords and injects them into an intermediate residual stream through a compromised runtime hook. To maintain recoverability, the injection strength is scaled with the local residual norm using the signal-to-residual-norm ratio. Across eleven models from seven architecture families, our evaluation shows 91--100% recovery on nine models with KL divergence 0.001--0.007, while evaluated activation-level detectors remain close to random guessing (AUC <= 0.56). Tested post-hoc defenses do not reliably eliminate the channel. Thus, an activation artifact can be schema-valid while carrying information that is not authorized to cross the boundary.