# Causality Laundering: Denial-Feedback Leakage in Tool-Calling LLM Agents

arXiv: https://arxiv.org/abs/2604.04035 · HTML: https://mlsanity.com/paper/2604.04035/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- Placed in Agent threats, guardrails and governance, one of 16 directions in LLM agents and tool use.
- Builds on 14 of its 44 references that are in the map.
- First posted on arXiv 5 Apr 2026.

## Placed in

- LLM agents and tool use / [Agent threats, guardrails and governance](https://mlsanity.com/agents/agent-threats-guardrails-and-governance/)

## Builds on (most cited first, 14 of 14)

- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Not what you've signed up for: Compromising Real-World LLM-Integrated Applications with Indirect Prompt Injection](https://mlsanity.com/paper/2302.12173/) (2023)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [The Instruction Hierarchy: Training LLMs to Prioritize Privileged Instructions](https://mlsanity.com/paper/2404.13208/) (2024)
- [NeMo Guardrails: A Toolkit for Controllable and Safe LLM Applications with Programmable Rails](https://mlsanity.com/paper/2310.10501/) (2023)
- [Defending Against Indirect Prompt Injection Attacks With Spotlighting](https://mlsanity.com/paper/2403.14720/) (2024)
- [AgentDojo: A Dynamic Environment to Evaluate Prompt Injection Attacks and Defenses for LLM Agents](https://mlsanity.com/paper/2406.13352/) (2024)
- [Securing AI Agents with Information-Flow Control](https://mlsanity.com/paper/2505.23643/) (2025)
- [RTBAS: Defending LLM Agents Against Prompt Injection and Privacy Leakage](https://mlsanity.com/paper/2502.08966/) (2025)
- [AgentArmor: Enforcing Program Analysis on Agent Runtime Trace to Defend Against Prompt Injection](https://mlsanity.com/paper/2508.01249/) (2025)
- [Formal Policy Enforcement for Real-World Agentic Systems](https://mlsanity.com/paper/2602.16708/) (2026)
- [AgentSentry: Mitigating Indirect Prompt Injection in LLM Agents via Temporal Causal Diagnostics and Context Purification](https://mlsanity.com/paper/2602.22724/) (2026)
- [CausalArmor: Efficient Indirect Prompt Injection Guardrails via Causal Attribution](https://mlsanity.com/paper/2602.07918/) (2026)
- [Noticing the Watcher: LLM Agents Can Infer CoT Monitoring from Blocking Feedback](https://mlsanity.com/paper/2603.16928/) (2026)

## Built on by (most cited first, 1 of 1)

- [Forensic Trajectory Signatures for Agent Memory Poisoning Detection](https://mlsanity.com/paper/2606.30566/) (2026)

## Abstract (arXiv)

Tool-calling LLM agents can read private data, invoke external services, and trigger real-world actions, creating a security problem at the point of tool execution. We identify a denial-feedback leakage pattern, which we term causality laundering, in which an adversary probes a protected action, learns from the denial outcome, and exfiltrates the inferred information through a later seemingly benign tool call. This attack is not captured by flat provenance tracking alone because the leaked information arises from causal influence of the denied action, not direct data flow. We present the Agentic Reference Monitor (ARM), a runtime enforcement layer that mediates every tool invocation by consulting a provenance graph over tool calls, returned data, field-level provenance, and denied actions. ARM propagates trust through an integrity lattice and augments the graph with counterfactual edges from denied-action nodes, enabling enforcement over both transitive data dependencies and denial-induced causal influence. In a controlled evaluation on three representative attack scenarios, ARM blocks causality laundering, transitive taint propagation, and mixed-provenance field misuse that a flat provenance baseline misses, while adding sub-millisecond policy evaluation overhead. These results suggest that denial-aware causal provenance is a useful abstraction for securing tool-calling agent systems.