diff --git a/.jules/sentinel.md b/.jules/sentinel.md
new file mode 100644
index 0000000..e215406
--- /dev/null
+++ b/.jules/sentinel.md
@@ -0,0 +1,4 @@
+## 2026-03-31 - [Prevent Information Leakage in Authentication Decorators]
+**Vulnerability:** `login_required` decorator in `auth/utils.py` returned raw exception details `str(e)` in JSON responses to clients during JWT verification errors.
+**Learning:** Returning exception strings in HTTP error responses can expose internal database URLs, system paths, or service credentials.
+**Prevention:** Log exception details server-side using standard `logger.exception()` and return generic sanitised error payloads to clients.
diff --git a/auth/utils.py b/auth/utils.py
index 4bded89..50511bc 100644
--- a/auth/utils.py
+++ b/auth/utils.py
@@ -1,14 +1,18 @@
-import bcrypt
-import jwt
+import logging
 import os
 import secrets
 from datetime import datetime, timedelta
 from functools import wraps
+from typing import Tuple, Optional
+
+import bcrypt
+import jwt
 from flask import request, jsonify, g
 from flask_jwt_extended import get_jwt_identity, verify_jwt_in_request
 from cache_db.redis_client import redis_client
 from cache_db.models import User, RefreshToken
-from typing import Tuple, Optional
+
+logger = logging.getLogger(__name__)
 
 
 class PasswordUtils:
@@ -128,8 +132,9 @@ def decorated_function(*args, **kwargs):
             g.user_id = user_id
             g.user = user_data
             return f(*args, **kwargs)
-        except Exception as e:
-            return jsonify({'error': 'Unauthorized', 'details': str(e)}), 401
+        except Exception:
+            logger.exception("JWT verification failed")
+            return jsonify({'error': 'Unauthorized'}), 401
     return decorated_function
 
 
diff --git a/src/handoff/__init__.py b/src/handoff/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/test_auth_utils.py b/tests/test_auth_utils.py
new file mode 100644
index 0000000..2c3a5f4
--- /dev/null
+++ b/tests/test_auth_utils.py
@@ -0,0 +1,40 @@
+import unittest
+from unittest.mock import MagicMock, patch
+import os
+import sys
+
+# Mock external cache_db module before importing auth.utils
+sys.modules['cache_db'] = MagicMock()
+sys.modules['cache_db.redis_client'] = MagicMock()
+sys.modules['cache_db.models'] = MagicMock()
+
+from flask import Flask, jsonify
+from auth.utils import login_required
+
+class TestLoginRequiredSecurity(unittest.TestCase):
+    def setUp(self):
+        self.app = Flask(__name__)
+        self.app.config['TESTING'] = True
+
+        @self.app.route('/protected')
+        @login_required
+        def protected_route():
+            return jsonify({'message': 'success'})
+
+        self.client = self.app.test_client()
+
+    @patch('auth.utils.verify_jwt_in_request')
+    def test_login_required_does_not_leak_exception_details(self, mock_verify):
+        # Simulate an exception with sensitive internal details during JWT verification
+        sensitive_error_msg = "Database connection string postgresql://user:secretpass@localhost/db failed"
+        mock_verify.side_effect = Exception(sensitive_error_msg)
+
+        response = self.client.get('/protected')
+        self.assertEqual(response.status_code, 401)
+        data = response.get_json()
+        self.assertEqual(data.get('error'), 'Unauthorized')
+        self.assertNotIn('details', data)
+        self.assertNotIn('secretpass', str(data))
+
+if __name__ == '__main__':
+    unittest.main()