diff --git a/x/wasm/ibc.go b/x/wasm/ibc.go
index 3a237552e..b0311f522 100644
--- a/x/wasm/ibc.go
+++ b/x/wasm/ibc.go
@@ -2,7 +2,6 @@ package wasm
 
 import (
 	"math"
-	"strings"
 
 	wasmvmtypes "github.com/CosmWasm/wasmvm/v2/types"
 	capabilitytypes "github.com/cosmos/ibc-go/modules/capability/types"
@@ -440,15 +439,19 @@ func (i IBCHandler) IBCReceivePacketCallback(
 }
 
 func validateSender(contractAddr, senderAddr string) (sdk.AccAddress, error) {
-	// We only allow the contract that sent the message to receive source chain callbacks for it.
-	if !strings.EqualFold(contractAddr, senderAddr) {
-		return nil, errorsmod.Wrapf(types.ErrExecuteFailed, "contract address %s does not match packet sender %s", contractAddr, senderAddr)
-	}
-
 	contractAddress, err := sdk.AccAddressFromBech32(contractAddr)
 	if err != nil {
 		return nil, errorsmod.Wrapf(err, "contract address")
 	}
+	senderAddress, err := sdk.AccAddressFromBech32(senderAddr)
+	if err != nil {
+		return nil, errorsmod.Wrapf(err, "packet sender address")
+	}
+
+	// We only allow the contract that sent the message to receive source chain callbacks for it.
+	if !contractAddress.Equals(senderAddress) {
+		return nil, errorsmod.Wrapf(types.ErrExecuteFailed, "contract address %s does not match packet sender %s", contractAddr, senderAddress)
+	}
 
 	return contractAddress, nil
 }