PPFedIT: Towards Privacy-Preserving Federated Instruction Tuning with Few-shot Local Examples

Fine-tuning large language models (LLMs) on domain-specific data is essential for downstream adaptation. In many deployments, a participant cannot hold the complete model locally. This happens because the model owner keeps the full model proprietary, or because the participant lacks sufficient compute resources. Split Learning (SL) addresses this by partitioning the model between the participant and a server so that only a small portion runs locally. When the underlying data is additionally distributed across multiple institutions with privacy requirements, Federated Learning (FL) further enables collaborative training across participants by sharing only model updates instead of raw data. In this combined setting, each client transmits intermediate activations to the server, and for LLM fine-tuning, this exchange poses an inherent privacy paradox. The autoregressive nature of LLMs causes the transmitted activations to leak the input, and existing perturbation-based defenses are fundamentally ineffective in this setting. We address this leakage through a learned obfuscate-and-recover scheme that protects participants' private datasets while still allowing an independently deployable model to be trained on the server side. Experiments demonstrate that our approach achieves strong privacy protection with modest utility loss and system overhead, making split-based federated LLM fine-tuning practically viable.

Membership inference attacks (MIAs) pose a serious privacy threat in federated learning (FL). While MIAs have been extensively studied in standard FL, the recent shift toward federated fine-tuning introduces new and largely unexplored attack surfaces. In this work, we show that federated prompt-tuning, which adapts pre-trained foundation models using lightweight input prefixes, exposes a novel and effective vector for membership inference. We propose PromptMIA, a membership inference attack tailored to federated prompt-tuning, in which a malicious server introduces adversarially crafted prompts and exploits their updates during collaborative training to determine whether a target data point belongs to a client's private dataset. We formalize this threat via a security game and demonstrate that PromptMIA achieves consistently high attack advantage across diverse benchmark datasets, substantially outperforming current SOTA federated MIAs. We also provide a theoretical lower bound on the attack advantage that explains the observed empirical behavior. Finally, we show that existing MIA defenses are often ineffective against PromptMIA, highlighting the need for defense mechanisms specifically tailored to prompt-tuning in federated settings.

Federated prompt tuning (FPT) enables collaborative adaptation of vision--language models (VLMs) using lightweight prompts. Existing methods often address heterogeneity and privacy through a split-prompt design under local differential privacy (DP), combining a shared prompt for global transfer with private prompts for local adaptation. However, a single shared prompt may over-smooth diverse transferable knowledge, weakening the balance between personalization and generalization. Multi-expert prompts (MEPs) can better capture this diversity, but enlarge the communicated space, increasing DP noise and communication cost while making robust expert composition more difficult. We propose FedSEPT, a privacy-preserving Fed}erated Subspace-decomposed Expert Prompt Tuning. Specifically, we employ Subspace-decomposed Expert Modeling (SEM) to parameterize multiple prompt experts with shared low-rank factors, a fixed public basis, and private residuals, thereby confining communication and DP perturbation to a compact factor space while enabling direct server aggregation in a common coordinate system. We further design Instance-aware Expert Fusion (IEF), which adaptively combines semantically complementary experts via on-device routing and performs efficient logit-level fusion using cached expert-specific text features. Extensive experiments on 11 heterogeneous benchmarks show that, under the same privacy constraints, FedSEPT achieves a better trade-off between local adaptation and global generalization than strong baselines.