Beyond Reward Suppression: Reshaping Steganographic Communication Protocols in MARL via Dynamic Representational Circuit Breaking

Increasingly autonomous agentic AI systems pose novel multi-agent risks, such as secret collusion via covert communication channels. The natural defence to these collusion attempts is to monitor plain-text communication, but the efficacy of monitors has been called into doubt by increasingly sophisticated model steganography; indeed, some theoretical schemes have been proposed that are information-theoretically or computationally indistinguishable from good-faith plain-text communication. In this paper, we demonstrate that the complexity of these schemes is no longer a safety barrier, as agentic coding models can already produce undetectable stegosystems when given realistic tool usage, such as code execution or accessing research papers through web searches. Agents also adapt when key ingredients are missing, for example, by adding model-sampling components or implementing related keyed coding schemes. We then frame tacit steganographic coordination between agents as a Schelling-point problem and introduce coordination metrics for estimating when two agents are likely to select compatible schemes without explicit prior agreement. Our results suggest a shift in the threat model for covert communication between AI agents, where the main barrier is no longer whether frontier agents can understand and implement sophisticated stegosystems, but coordination: whether independently acting agents can converge on compatible schemes, keys, and parameters. We find substantial convergence on broad scheme families but limited strict one-shot coordination, suggesting that shared artefacts, repeated interaction, and tool-mediated search are the settings where covert communication risks are most acute. Overall, our findings provide empirical grounding for the recent strategic confinement hypothesis, which assumes that capable agents can construct covert channels that survive monitoring.

Multi-agent systems built on large language models (LLMs) are increasingly deployed in high-stakes settings such as finance, healthcare, and software engineering, where agents coordinate through natural-language messages. The same channels, however, let colluding agents exfiltrate confidential information or coordinate unauthorized actions, and steganography can hide such communication inside outputs that look ordinary to an auditor reading the transcript. Existing provably undetectable LLM steganography protocols are not suited to realistic deployments. High-capacity schemes assume a symmetric setting where the receiver can reproduce the sender's output distribution, the state-of-the-art protocol for asymmetric agents has very low capacity, and most approaches rely on a pre-shared secret key. We make the threat of undetectable agent collusion concrete with Codetta, a high-capacity steganographic protocol for independently deployed agents in realistic asymmetric settings. Codetta combines a shared public model that estimates the communication channel, a sampling mechanism that preserves the sender's output distribution, and an adaptive error-correcting code. It further removes the pre-shared key through a steganographic key exchange that lets independently deployed agents establish a shared key while keeping the transcript computationally indistinguishable from ordinary model outputs. Across three agent workloads and three sender models, Codetta achieves up to $94\times$ the capacity of the state-of-the-art asymmetric protocol, and its key exchange establishes a shared key with about 80k visible tokens at an empirically certified failure probability of at most $4.1\times 10^{-3}$. These results show that effectively undetectable collusion is becoming feasible between independently deployed agents, so auditing must go beyond inspecting communication transcripts.

Language-model agents can communicate through continuous hidden states that are invisible in public transcripts, creating opportunities for covert harmful coordination. We introduce Verifiable Latent Alignments (VLA), an activation-aware framework for monitoring and steering these private communication channels. For every monitored decision, VLA links the private latent-state record and channel status to the resulting public action using a shared event identifier, enabling matched causal analysis. Our first contribution is a neutral-only three-layer monitor combining representation anomaly detection, counterfactual action-distribution influence, and sparse-autoencoder interpretation support. Our second contribution is a steerability framework spanning black-box behavioral instructions and white-box matched-neutral counterfactuals. Our third contribution is an evaluation on a controlled multi-agent auction benchmark covering homogeneous and heterogeneous model pairs, many-agent scalability, and intervention effectiveness. The sequential monitor achieves mean area under the receiver operating characteristic curve (AUROC) of 0.993 for homogeneous agents and 0.854 for heterogeneous pairs when text- and latent-collusion rows are pooled as positives. In Qwen3-0.6B auctions with 25-100 bidders, monitoring requires only a small normalized load relative to all possible directed pairs, while full white-box steering achieves 100% bid-distribution recovery and reduces collusive low-bid behavior by 47.3 percentage points. Because full white-box steering replays the matched neutral counterfactual, its exact recovery is a sanity check by construction. Overall, the controlled study shows that the evaluated private channel attacks can be monitored without training the primary monitor on attack examples and mitigated when matched counterfactual access is available.