# Disentangling Deception and Hallucination Failures in LLMs

arXiv: https://arxiv.org/abs/2602.14529 · HTML: https://mlsanity.com/paper/2602.14529/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 80 of its 91 references that are in the map.
- First posted on arXiv 16 Feb 2026.

## Builds on (most cited first, 30 of 80)

- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Deep reinforcement learning from human preferences](https://mlsanity.com/paper/1706.03741/) (2017)
- [Locating and Editing Factual Associations in GPT](https://mlsanity.com/paper/2202.05262/) (2022)
- [A Survey on Hallucination in Large Language Models: Principles, Taxonomy, Challenges, and Open Questions](https://mlsanity.com/paper/2311.05232/) (2023)
- [Sparse Autoencoders Find Highly Interpretable Features in Language Models](https://mlsanity.com/paper/2309.08600/) (2023)
- [Inference-Time Intervention: Eliciting Truthful Answers from a Language Model](https://mlsanity.com/paper/2306.03341/) (2023)
- [Language Models Don't Always Say What They Think: Unfaithful Explanations in Chain-of-Thought Prompting](https://mlsanity.com/paper/2305.04388/) (2023)
- [Towards Understanding Sycophancy in Language Models](https://mlsanity.com/paper/2310.13548/) (2023)
- [Refusal in Language Models Is Mediated by a Single Direction](https://mlsanity.com/paper/2406.11717/) (2024)
- [Large Language Models Cannot Self-Correct Reasoning Yet](https://mlsanity.com/paper/2310.01798/) (2023)
- [Does Reinforcement Learning Really Incentivize Reasoning Capacity in LLMs Beyond the Base Model?](https://mlsanity.com/paper/2504.13837/) (2025)
- [Can LLMs Express Their Uncertainty? An Empirical Evaluation of Confidence Elicitation in LLMs](https://mlsanity.com/paper/2306.13063/) (2023)
- [Quantifying Language Models' Sensitivity to Spurious Features in Prompt Design or: How I learned to start worrying about prompt formatting](https://mlsanity.com/paper/2310.11324/) (2023)
- [Jailbreaking ChatGPT via Prompt Engineering: An Empirical Study](https://mlsanity.com/paper/2305.13860/) (2023)
- [GPT-4 Is Too Smart To Be Safe: Stealthy Chat with LLMs via Cipher](https://mlsanity.com/paper/2308.06463/) (2023)
- [The Reversal Curse: LLMs trained on "A is B" fail to learn "B is A"](https://mlsanity.com/paper/2309.12288/) (2023)
- [Understanding the Effects of RLHF on LLM Generalisation and Diversity](https://mlsanity.com/paper/2310.06452/) (2023)
- [Alignment faking in large language models](https://mlsanity.com/paper/2412.14093/) (2024)
- [Towards Best Practices of Activation Patching in Language Models: Metrics and Methods](https://mlsanity.com/paper/2309.16042/) (2023)
- [Reasoning on Graphs: Faithful and Interpretable Large Language Model Reasoning](https://mlsanity.com/paper/2310.01061/) (2023)
- [INSIDE: LLMs' Internal States Retain the Power of Hallucination Detection](https://mlsanity.com/paper/2402.03744/) (2024)
- [How Language Model Hallucinations Can Snowball](https://mlsanity.com/paper/2305.13534/) (2023)
- [Frontier Models are Capable of In-context Scheming](https://mlsanity.com/paper/2412.04984/) (2024)
- [Semantic Entropy Probes: Robust and Cheap Hallucination Detection in LLMs](https://mlsanity.com/paper/2406.15927/) (2024)
- [OR-Bench: An Over-Refusal Benchmark for Large Language Models](https://mlsanity.com/paper/2405.20947/) (2024)
- [LLMs Know More Than They Show: On the Intrinsic Representation of LLM Hallucinations](https://mlsanity.com/paper/2410.02707/) (2024)

## Abstract (arXiv)

Failures in large language models (LLMs) are often analyzed from a behavioral perspective, where incorrect outputs in factual question answering are commonly associated with missing knowledge. In this work, focusing on entity-based factual queries, we suggest that such a view may conflate different failure mechanisms, and propose an internal, mechanism-oriented perspective that separates Knowledge Existence from Behavior Expression. Under this formulation, hallucination and deception correspond to two qualitatively different failure modes that may appear similar at the output level but differ in their underlying mechanisms. To study this distinction, we construct a controlled environment for entity-centric factual questions in which knowledge is preserved while behavioral expression is selectively altered, enabling systematic analysis of four behavioral cases. We analyze these failure modes through representation separability, sparse interpretability, and inference-time activation steering.