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Watermark basin detection identifies 79% of distilled LLMs at 0.1% false-positive rate

AI/ML Defense · Prototype · arXiv Threat model

The claim

WM-Basin can detect API-distilled language models with high true-positive rates while maintaining a strict 0.1% false-positive rate

Hongyan Chang, Hady Elsahar, Tom Sander, Pierre Fernandez, Saeed Mahloujifar, Sylvestre-Alvise Rebuffi, Tomáš Souček, Tuan Tran, Valeriu Lacatusu, Surya Parimi, Rashel Moritz, Vanessa Stark, Alexandre Mourachko · arXiv Paper PDF

Published as: “Watermark Basins: Black-Box Detection of Distilled LLMs”

So what

Verifiers can reliably prove unauthorized distillation of watermarked LLMs from API access alone, even after common model optimizations.

The five-minute version

WM-Basin detects 79% of distilled models at n-gram=1 and 45% at n-gram=3 with a 0.1% false-positive rate, far outperforming the prior token-level detector (29% and 1.3%). The method works across 24 student architectures, four teacher models, and four watermark schemes, and survives quantization, pruning, and reinforcement-learning post-training. Detection degrades when only a small fraction of training traces are watermarked or when the student is further fine-tuned on clean data. The evidence is based on 1,200 distilled models evaluated on public math benchmarks.

What they found 5

What undercuts it the paper’s own results

Stated limits 2

What’s new here 4

Threat model stated by the source

AdversaryAn entity that queries a proprietary teacher model, receives watermarked completions, and fine-tunes a student model on those traces without knowing the secret watermark key.
CapabilityBlack-box access to the teacher, ability to generate arbitrary prompts, and supervised fine-tuning on the collected data.
AssumesWatermarked teacher outputs are indistinguishable from clean text to the adversary; The verifier can query the suspect model on a disjoint set of prompts

Artifacts & methods 8

Topics

LLM watermarkingmodel distillationblack-box provenance detectiongradient probingparameter-space alignmentnon-parametric rank testingpost-training robustness
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