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Paper · arXiv

Policy-Invisible Violations in LLM-Based Agents

LLM-based agents can execute actions that are syntactically valid, user-sanctioned, and semantically appropriate, yet still violate organizational policy because the facts needed for correct policy judgment are hidden at decision time. We call this failure mode policy-invisible violations: cases in which compliance depends on entity attributes, contextual state, or session history absent from the agent's visible context. We present PhantomPolicy, a benchmark spanning eight violation categories with balanced violation and safe-control cases, in which all tool responses contain clean business data without policy metadata. We manually review all 600 model traces produced by five frontier mod...

AuthorsJie Wu, Ming Gong
Primary categorycs.AI
Published14 April 2026
Last updated at source14 April 2026
cs.AIcs.CLcs.CRcs.LG
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