Both privacy and factual accuracy are paramount in high-stakes domains like healthcare. Concerningly, we uncover and investigate a privacy-hallucination tradeoff in differentially private (DP) language models. First, we empirically show that models pre-trained or fine-tuned with DP tend to produce more hallucinations than non-DP counterparts, with increased severity as the privacy budget grows stricter. Second, we investigate model properties driving this tradeoff, demonstrating that DP mechanisms flatten output distributions, potentially redistributing probability mass toward factually incorrect alternatives. Third, through experiments where we control fact frequency in training data, we characterize how information frequency can reduce hallucination risks in DP models. Overall, our findings underscore the need for more nuanced privacy-preserving interventions that offer rigorous privacy guarantees without compromising factual accuracy.
Large language models generate fluent text that can contain unfaithful claims -- a phenomenon known as hallucination. We present a multi-signal detection pipeline combining fine-tuned DeBERTa-v3 classification, Monte Carlo (MC) Dropout uncertainty quantification, and temperature-scaled calibration for response-level hallucination detection. Evaluated on the HaluEval benchmark, our pipeline achieves F1=0.915 and AUROC=0.977 on general-domain tasks, with per-task F1 scores of 0.97 (QA), 0.96 (Summarization), and 0.82 (Dialogue). MC Dropout inference further improves accuracy to 93.2%. A context ablation study confirms the model performs genuine entailment reasoning rather than exploiting surface patterns, with summarization F1 dropping 24% when knowledge context is removed. Learning curve analysis reveals that 25% of training data captures 77% of full-data performance. Beyond detection, we apply Direct Preference Optimization (DPO) to a Qwen2.5-0.5B generator, reducing its hallucination rate from 85.5% to 37.7% (55.9% relative reduction) as measured by our detector. Cross-domain evaluation on the SciFact biomedical benchmark shows that general-domain training transfers poorly (F1=0.52), motivating domain-specific fine-tuning. PubMedBERT fine-tuned on SciFact achieves F1=0.63 and AUROC=0.81, demonstrating that domain-matched pre-training is the strongest adaptation strategy. Code and models are available at https://github.com/varunteja99/hallucination-detection-nlp
Large language models (LLMs) trained on web-scale corpora can memorize sensitive training data, posing significant privacy risks. Differential privacy (DP) has emerged as a principled framework that limits the influence of individual data points during training, yet the relationship between differential privacy and social bias in LLMs remains poorly understood. To investigate this, we present a systematic evaluation of social bias in a pretrained LLM trained with DP-SGD, comparing a DP model against non-DP baselines across four complementary paradigms: sentence scoring, text completion, tabular classification, and question answering. We find that DP reduces bias in sentence scoring tasks, where bias is measured through controlled likelihood comparisons, yet this improvement does not generalize across all tasks. Our results reveal a discrepancy between logit-level bias and output-level bias. Moreover, decreasing memorization does not necessarily reduce unfairness, underscoring the importance of multi-paradigm evaluation when assessing fairness in LLMs.
Recent work has applied differential privacy (DP) to adapt large language models (LLMs) for sensitive applications, offering theoretical guarantees. However, its practical effectiveness remains unclear, partly due to LLM pretraining, where overlaps and interdependencies with adaptation data can undermine privacy despite DP efforts. To analyze this issue in practice, we investigate privacy risks under DP adaptations in LLMs using state-of-the-art attacks such as robust membership inference and canary data extraction. We benchmark these risks by systematically varying the adaptation data distribution, from exact overlaps with pretraining data, through in-distribution (IID) cases, to entirely out-of-distribution (OOD) examples. Additionally, we evaluate how different adaptation methods and different privacy regimes impact the vulnerability. Our results show that distribution shifts strongly influence privacy vulnerability: the closer the adaptation data is to the pretraining distribution, the higher the practical privacy risk at the same theoretical guarantee, even without direct data overlap. We find that parameter-efficient fine-tuning methods, such as LoRA, achieve the highest empirical privacy protection for OOD data. Our benchmark identifies key factors for achieving practical privacy in DP LLM adaptation, providing actionable insights for deploying customized models in sensitive settings. Looking forward, we propose a structured framework for holistic privacy assessment beyond adaptation privacy, to identify and evaluate risks across the full pretrain-adapt pipeline of LLMs.