Encoding of key bits in the quadratures of the electromagnetic light field is an essential part of any continuousvariable quantum key distribution system. However, flaws of practical implementation can make such systems susceptible to leakage of secret information. We verify a side channel presence in an optical in-phase and quadrature modulator which is caused by limited suppression of a quantum information-carrying sideband. We investigate various strategies an unauthorized third party can exploit the vulnerability in a proof-of-concept experiment and theoretically assess the modulation leakage effect on a security of the Gaussian coherent-state continuous-variable quantum key distribution protocol and show that the leakage reduces the range of conditions which support secure key generation. Without the control of sideband modulation in practical in-phase and quadrature modulator-based systems the security can be compromised.
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