Continuous variable quantum cryptography: beating the 3 dB loss limit.

We demonstrate that secure quantum key distribution systems based on continuous variable implementations can operate beyond the apparent 3 dB loss limit that is implied by the beam splitting attack. The loss limit was established for standard minimum uncertainty states such as coherent states. We show that, by an appropriate postselection mechanism, we can enter a region where Eve's knowledge on Alice's key falls behind the information shared between Alice and Bob, even in the presence of substantial losses.