diff --git a/lbry/wallet/wallet.py b/lbry/wallet/wallet.py
index abbfb688c7..c3c2e8098e 100644
--- a/lbry/wallet/wallet.py
+++ b/lbry/wallet/wallet.py
@@ -177,6 +177,8 @@ def unpack(cls, password, encrypted):
         except zlib.error as e:
             if "incorrect header check" in e.args[0].lower():
                 raise InvalidPasswordError()
+            if "unknown compression method" in e.args[0].lower():
+                raise InvalidPasswordError()
             raise
         return json.loads(decompressed)