When a quantum cryptographic system operates in the presence of backgr
ound noise, security of the key can be recovered by a procedure called
key distillation. A key-distillation scheme effective against so-call
ed individual (bitwise-independent) eavesdropping attacks involves sac
rifice of some of the data through privacy amplification. We derive th
e amount of data sacrifice sufficient to defend against individual eav
esdropping attacks in both BB84 and B92 protocols and show in what sen
se the communication becomes secure as a result. We also compare the s
ecrecy capacity of various quantum cryptosystems, taking into account
data sacrifice during key distillation, and conclude that the BB84 pro
tocol may offer better performance characteristics than the B92. (C) 1
998 Optical Society of America.