LGCLCRSep 25, 2025

Can Federated Learning Safeguard Private Data in LLM Training? Vulnerabilities, Attacks, and Defense Evaluation

arXiv:2509.20680v11 citationsh-index: 16EMNLP
Originality Incremental advance
AI Analysis

This addresses privacy vulnerabilities in federated learning for organizations using LLMs, highlighting significant risks despite existing protections.

The paper tackles the problem of data leakage in federated learning for large language models, showing that attackers can extract training data from the global model, with leakage increasing with model size, and introduces an enhanced attack strategy that intensifies privacy risks.

Fine-tuning large language models (LLMs) with local data is a widely adopted approach for organizations seeking to adapt LLMs to their specific domains. Given the shared characteristics in data across different organizations, the idea of collaboratively fine-tuning an LLM using data from multiple sources presents an appealing opportunity. However, organizations are often reluctant to share local data, making centralized fine-tuning impractical. Federated learning (FL), a privacy-preserving framework, enables clients to retain local data while sharing only model parameters for collaborative training, offering a potential solution. While fine-tuning LLMs on centralized datasets risks data leakage through next-token prediction, the iterative aggregation process in FL results in a global model that encapsulates generalized knowledge, which some believe protects client privacy. In this paper, however, we present contradictory findings through extensive experiments. We show that attackers can still extract training data from the global model, even using straightforward generation methods, with leakage increasing as the model size grows. Moreover, we introduce an enhanced attack strategy tailored to FL, which tracks global model updates during training to intensify privacy leakage. To mitigate these risks, we evaluate privacy-preserving techniques in FL, including differential privacy, regularization-constrained updates and adopting LLMs with safety alignment. Our results provide valuable insights and practical guidelines for reducing privacy risks when training LLMs with FL.

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