Cross-Border Data Security and Privacy Risks in Large Language Models and IoT Systems

Fuente: arXiv
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Autore principale: Handapangoda, Chalitha
Natura: Preprint
Pubblicazione: 2026
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author Handapangoda, Chalitha
author_facet Handapangoda, Chalitha
contents The reliance of Large Language Models and Internet of Things systems on massive, globally distributed data flows creates systemic security and privacy challenges. When data traverses borders, it becomes subject to conflicting legal regimes, such as the EU's General Data Protection Regulation and China's Personal Information Protection Law, compounded by technical vulnerabilities like model memorization. Current static encryption and data localization methods are fragmented and reactive, failing to provide adequate, policy-aligned safeguards. This research proposes a Jurisdiction-Aware, Privacy-by-Design architecture that dynamically integrates localized encryption, adaptive differential privacy, and real-time compliance assertion via cryptographic proofs. Empirical validation in a multi-jurisdictional simulation demonstrates this architecture reduced unauthorized data exposure to below five percent and achieved zero compliance violations. These security gains were realized while maintaining model utility retention above ninety percent and limiting computational overhead. This establishes that proactive, integrated controls are feasible for secure and globally compliant AI deployment.
format Preprint
id arxiv_https___arxiv_org_abs_2601_06612
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Cross-Border Data Security and Privacy Risks in Large Language Models and IoT Systems
Handapangoda, Chalitha
Cryptography and Security
Machine Learning
K.4.1; D.4.6
The reliance of Large Language Models and Internet of Things systems on massive, globally distributed data flows creates systemic security and privacy challenges. When data traverses borders, it becomes subject to conflicting legal regimes, such as the EU's General Data Protection Regulation and China's Personal Information Protection Law, compounded by technical vulnerabilities like model memorization. Current static encryption and data localization methods are fragmented and reactive, failing to provide adequate, policy-aligned safeguards. This research proposes a Jurisdiction-Aware, Privacy-by-Design architecture that dynamically integrates localized encryption, adaptive differential privacy, and real-time compliance assertion via cryptographic proofs. Empirical validation in a multi-jurisdictional simulation demonstrates this architecture reduced unauthorized data exposure to below five percent and achieved zero compliance violations. These security gains were realized while maintaining model utility retention above ninety percent and limiting computational overhead. This establishes that proactive, integrated controls are feasible for secure and globally compliant AI deployment.
title Cross-Border Data Security and Privacy Risks in Large Language Models and IoT Systems
topic Cryptography and Security
Machine Learning
K.4.1; D.4.6
url https://arxiv.org/abs/2601.06612