diff --git a/packages/keymaster/src/db-wallet-json-enc.js b/packages/keymaster/src/db-wallet-json-enc.js
index 8de20d30..4fcbf0f4 100644
--- a/packages/keymaster/src/db-wallet-json-enc.js
+++ b/packages/keymaster/src/db-wallet-json-enc.js
@@ -1,10 +1,10 @@
 import crypto from 'crypto';
 
-const algorithm = 'aes-256-cbc';       // Algorithm
+const algorithm = 'aes-256-gcm';       // Algorithm
 const keyLength = 32;                 // 256 bit AES-256
-const ivLength = 16;                  // 128-bit AES block size
+const ivLength = 12;                  // 96-bit IV, standard for AES-GCM
 const saltLength = 16;                // 128-bit salt
-const iterations = 200000;            // PBKDF2 iterations
+const iterations = 100000;            // PBKDF2 iterations
 const digest = 'sha512';               // PBKDF2 hash function
 
 let baseWallet;
@@ -20,7 +20,7 @@ export function setWallet(wallet) {
 
 export function saveWallet(wallet, overwrite = false) {
     if (!passphrase) {
-        throw new Error('Passphrase not set');
+        throw new Error('KC_ENCRYPTED_PASSPHRASE not set');
     }
 
     const walletJson = JSON.stringify(wallet, null, 4);
@@ -29,13 +29,16 @@ export function saveWallet(wallet, overwrite = false) {
     const iv = crypto.randomBytes(ivLength);
     const cipher = crypto.createCipheriv(algorithm, key, iv);
 
-    let encrypted = cipher.update(walletJson, 'utf8', 'base64');
-    encrypted += cipher.final('base64');
+    let encrypted = cipher.update(walletJson, 'utf8');
+    encrypted = Buffer.concat([encrypted, cipher.final()]);
+
+    const authTag = cipher.getAuthTag();
+    const combined = Buffer.concat([encrypted, authTag]);
 
     const encryptedData = {
         salt: salt.toString('base64'),
         iv: iv.toString('base64'),
-        data: encrypted
+        data: combined.toString('base64')
     };
 
     return baseWallet.saveWallet(encryptedData, overwrite);
@@ -43,7 +46,7 @@ export function saveWallet(wallet, overwrite = false) {
 
 export function loadWallet() {
     if (!passphrase) {
-        throw new Error('Passphrase not set');
+        throw new Error('KC_ENCRYPTED_PASSPHRASE not set');
     }
 
     const encryptedData = baseWallet.loadWallet();
@@ -57,13 +60,17 @@ export function loadWallet() {
 
     const salt = Buffer.from(encryptedData.salt, 'base64');
     const iv = Buffer.from(encryptedData.iv, 'base64');
-    const encryptedJSON = encryptedData.data;
+    const combined = Buffer.from(encryptedData.data, 'base64');
+
+    const authTag = combined.subarray(combined.length - 16);
+    const encryptedJSON = combined.subarray(0, combined.length - 16);
     const key = crypto.pbkdf2Sync(passphrase, salt, iterations, keyLength, digest);
     const decipher = crypto.createDecipheriv(algorithm, key, iv);
+    decipher.setAuthTag(authTag);
 
     let decrypted;
     try {
-        decrypted = decipher.update(encryptedJSON, 'base64', 'utf8');
+        decrypted = decipher.update(encryptedJSON, null, 'utf8');
         decrypted += decipher.final('utf8');
     } catch (err) {
         throw new Error('Incorrect passphrase.');
diff --git a/packages/keymaster/src/db-wallet-web-enc.js b/packages/keymaster/src/db-wallet-web-enc.js
index 04bfcff9..6448bdf5 100644
--- a/packages/keymaster/src/db-wallet-web-enc.js
+++ b/packages/keymaster/src/db-wallet-web-enc.js
@@ -2,7 +2,7 @@ const algorithm = 'AES-GCM';
 const kdf = 'PBKDF2';
 const hash = 'SHA-512';
 const keyLength = 256;                // 256 bit AES-256
-const ivLength = 12;                  // 128-bit AES block size
+const ivLength = 12;                  // 96-bit IV, standard for AES-GCM
 const saltLength = 16;                // 128-bit salt
 const iterations = 100000;            // PBKDF2 iterations
 
diff --git a/services/gatekeeper/client/src/App.js b/services/gatekeeper/client/src/App.js
index 9a51f9cf..1d0c41ee 100644
--- a/services/gatekeeper/client/src/App.js
+++ b/services/gatekeeper/client/src/App.js
@@ -23,14 +23,13 @@ function App() {
 
     useEffect(() => {
         async function initializeWallet() {
-            let wallet = wallet_web;
-            const walletData = await wallet.loadWallet();
+            const walletData = await wallet_web.loadWallet();
 
             if (walletData && walletData.salt && walletData.iv && walletData.data) {
                 setIsEncrypted(true);
                 setModalAction('decrypt');
             } else {
-                keymaster.start({ gatekeeper, wallet, cipher });
+                keymaster.start({ gatekeeper, wallet_web, cipher });
                 setIsReady(true);
             }
         }
diff --git a/tests/keymaster.test.js b/tests/keymaster.test.js
index da5e0121..aafbb499 100644
--- a/tests/keymaster.test.js
+++ b/tests/keymaster.test.js
@@ -147,7 +147,7 @@ describe('loadWallet', () => {
             throw new ExpectedExceptionError();
         } catch (error) {
             expect(ok).toBe(true);
-            expect(error.message).toBe('Passphrase not set');
+            expect(error.message).toBe('KC_ENCRYPTED_PASSPHRASE not set');
         }
     });
 
@@ -303,7 +303,7 @@ describe('saveWallet', () => {
             await keymaster.saveWallet(mockWallet);
             throw new ExpectedExceptionError();
         } catch (error) {
-            expect(error.message).toBe('Passphrase not set');
+            expect(error.message).toBe('KC_ENCRYPTED_PASSPHRASE not set');
         }
     });