Safer Reasoning Traces: Measuring and Mitigating Chain-of-Thought Leakage in LLMs

Large reasoning models (LRMs) produce reasoning traces (RTs) that often contain sensitive information. These leaky thoughts are difficult to control and frequently violate explicit privacy directives. Because RTs can be exposed through prompt injection attacks, this becomes a direct privacy risk to the user. We approach this as a controllability problem: since privacy directives are themselves instructions, improving instruction-following (IF) within the RT provides a direct path to reducing privacy leaks. To this end, we introduce an SFT dataset that teaches models to follow general instructions throughout their reasoning process, and propose Staged Decoding, a simple decoding strategy that decouples RT and answer generation using separate LoRA adapters to maximize IF of each component. We evaluate our approach on six models from two families (1.7B-14B parameters), across two IF benchmarks and two privacy benchmarks. Our method yields substantial improvements, with gains of up to 20.9 points in IF and 51.9 percentage points on privacy benchmarks, though these can come at the cost of task utility due to the trade-off between reasoning performance and IF. Our results show that improving IF in LRMs can significantly enhance privacy, suggesting a promising direction for future privacy-aware LRMs. Our code is available at https://github.com/UKPLab/arxiv2026-controllable-reasoning-models.

Leading large language model providers now conceal their models' step-by-step reasoning, or chain-of-thought, to protect intellectual property and limit information leakage. Rather than storing these traces server-side, providers return them to the client as blocks of encrypted text, which the client passes back with each subsequent request. Building on prior research, we identify an architectural vulnerability: these encrypted blocks are fully compatible and interchangeable across different sessions, users, and models within a provider's ecosystem. We exploit this compatibility to develop a scalable decryption jailbreak. By injecting an encrypted reasoning trace from a given model into a weaker, and less safeguarded model from the same provider, we force it to decode and output the trace verbatim in plaintext, without ever jailbreaking the more capable model directly. This vulnerability enables four distinct attack vectors. First, it circumvents anti-distillation mechanisms, allowing adversaries to extract a proprietary model's reasoning, as we demonstrate across Anthropic, OpenAI, and Google. Second, it allows for large-scale private data extraction. Developers frequently share session logs publicly, unaware of contents of the encrypted blocks. By decoding 315,320 reasoning blocks scraped from public repositories, we recovered 367 Personally Identifiable Information (PII) artifacts and 182 credentials. Third, it inadvertently reveals hazardous information hidden within the reasoning process, even in cases where the model's final, visible output safely rejects a malicious request. Fourth, attackers can leverage this flaw to execute invisible prompt injections, embedding malicious payloads entirely within encrypted blocks to poison public agentic rollouts. Following responsible disclosure, we propose concrete cryptographic and system-level mitigations to secure client-side reasoning.

Modern language models exhibit rich internal structure, yet little is known about how privacy-sensitive behaviors, such as personally identifiable information (PII) leakage, are represented and modulated within their hidden states. We present UniLeak, a mechanistic-interpretability framework that identifies universal activation directions: latent directions in a model's residual stream whose linear addition at inference time consistently increases the likelihood of generating PII across prompts. These model-specific directions generalize across contexts and amplify PII generation probability, with minimal impact on generation quality. UniLeak recovers such directions without access to training data or groundtruth PII, relying only on self-generated text. Across multiple models and datasets, steering along these universal directions substantially increases PII leakage compared to existing prompt-based extraction methods. Our results offer a new perspective on PII leakage: the superposition of a latent signal in the model's representations, enabling both risk amplification and mitigation.