Sindhuja Madabushi

Sindhuja Madabushi, Ahmad Faraz Khan, Haider Ali et al.

Vertical Federated Learning (VFL) enables collaborative model training across organizations that share common user samples but hold disjoint feature spaces. Despite its potential, VFL is susceptible to feature inference attacks, in which adversarial parties exploit shared confidence scores (i.e., prediction probabilities) during inference to reconstruct private input features of other participants. To counter this threat, we propose PRIVEE (PRIvacy-preserving Vertical fEderated lEarning), a novel defense mechanism named after the French word privée, meaning "private." PRIVEE obfuscates confidence scores while preserving critical properties such as relative ranking and inter-score distances. Rather than exposing raw scores, PRIVEE shares only the transformed representations, mitigating the risk of reconstruction attacks without degrading model prediction accuracy. Extensive experiments show that PRIVEE achieves a threefold improvement in privacy protection compared to state-of-the-art defenses, while preserving full predictive performance against advanced feature inference attacks.

Sindhuja Madabushi, Ahmad Faraz Khan, Haider Ali et al.

Vertical Federated Learning (VFL) enables organizations with disjoint feature spaces but shared user bases to collaboratively train models without sharing raw data. However, existing VFL systems face critical limitations: they often lack effective incentive mechanisms, struggle to balance privacy-utility tradeoffs, and fail to accommodate clients with heterogeneous resource capabilities. These challenges hinder meaningful participation, degrade model performance, and limit practical deployment. To address these issues, we propose OPUS-VFL, an Optimal Privacy-Utility tradeoff Strategy for VFL. OPUS-VFL introduces a novel, privacy-aware incentive mechanism that rewards clients based on a principled combination of model contribution, privacy preservation, and resource investment. It employs a lightweight leave-one-out (LOO) strategy to quantify feature importance per client, and integrates an adaptive differential privacy mechanism that enables clients to dynamically calibrate noise levels to optimize their individual utility. Our framework is designed to be scalable, budget-balanced, and robust to inference and poisoning attacks. Extensive experiments on benchmark datasets (MNIST, CIFAR-10, and CIFAR-100) demonstrate that OPUS-VFL significantly outperforms state-of-the-art VFL baselines in both efficiency and robustness. It reduces label inference attack success rates by up to 20%, increases feature inference reconstruction error (MSE) by over 30%, and achieves up to 25% higher incentives for clients that contribute meaningfully while respecting privacy and cost constraints. These results highlight the practicality and innovation of OPUS-VFL as a secure, fair, and performance-driven solution for real-world VFL.