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Shadow Data in Tool Calls: The Privacy Leak Hiding in Plain Sight

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Local agents leak sensitive inputs inside external tool requests: prototype analysis of a smart‑home agent finds a 72% leak rate across sampled calls, with weather and maps highest and calendar/email/search around 57–60%. A working Tool Call Sanitizer on Raspberry Pi intercepts outbound requests, generalizes coordinates to city-level and removes sensitive entity tags, cutting identifiable payload while preserving task utility, with tradeoffs of over‑sanitization and ambiguous context handling.

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