diff --git a/js/src/modals/SMSVerification/SMSVerification.js b/js/src/modals/SMSVerification/SMSVerification.js
index dbdb7625f..3575fc76a 100644
--- a/js/src/modals/SMSVerification/SMSVerification.js
+++ b/js/src/modals/SMSVerification/SMSVerification.js
@@ -66,7 +66,7 @@ export default class SMSVerification extends Component {
         visible scroll
         current={ phase }
         steps={ ['Enter Data', 'Request', 'Enter Code', 'Confirm', 'Done!'] }
-        waiting={ [ 1, 3 ] }
+        waiting={ error ? [] : [ 1, 3 ] }
       >
         { this.renderStep(phase, error) }
       </Modal>
diff --git a/js/src/modals/SMSVerification/check-if-tx-failed.js b/js/src/modals/SMSVerification/check-if-tx-failed.js
new file mode 100644
index 000000000..39689bedd
--- /dev/null
+++ b/js/src/modals/SMSVerification/check-if-tx-failed.js
@@ -0,0 +1,28 @@
+// Copyright 2015, 2016 Ethcore (UK) Ltd.
+// This file is part of Parity.
+
+// Parity is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Parity is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Parity.  If not, see <http://www.gnu.org/licenses/>.
+
+const checkIfTxFailed = (api, tx, gasSent) => {
+  return api.pollMethod('eth_getTransactionReceipt', tx)
+  .then((receipt) => {
+    // TODO: Right now, there's no way to tell wether the EVM code crashed.
+    // Because you usually send a bit more gas than estimated (to make sure
+    // it gets mined quickly), we transaction probably failed if all the gas
+    // has been used up.
+    return receipt.gasUsed.eq(gasSent);
+  });
+};
+
+export default checkIfTxFailed;
diff --git a/js/src/modals/SMSVerification/store.js b/js/src/modals/SMSVerification/store.js
index 2d4aa099b..d8a1247e5 100644
--- a/js/src/modals/SMSVerification/store.js
+++ b/js/src/modals/SMSVerification/store.js
@@ -24,6 +24,7 @@ const contract = '0xcE381B876A85A72303f7cA7b3a012f58F4CEEEeB';
 
 import checkIfVerified from './check-if-verified';
 import checkIfRequested from './check-if-requested';
+import checkIfTxFailed from './check-if-tx-failed';
 import waitForConfirmations from './wait-for-confirmations';
 import postToVerificationServer from './post-to-verification-server';
 
@@ -163,8 +164,14 @@ export default class VerificationStore {
         })
         .then((txHash) => {
           this.requestTx = txHash;
-          this.step = POSTED_REQUEST;
-          return waitForConfirmations(api, txHash, 1);
+          return checkIfTxFailed(api, txHash, options.gas)
+          .then((hasFailed) => {
+            if (hasFailed) {
+              throw new Error('Transaction failed, all gas used up.');
+            }
+            this.step = POSTED_REQUEST;
+            return waitForConfirmations(api, txHash, 1);
+          });
         });
     }
 
@@ -206,8 +213,14 @@ export default class VerificationStore {
       })
       .then((txHash) => {
         this.confirmationTx = txHash;
-        this.step = POSTED_CONFIRMATION;
-        return waitForConfirmations(api, txHash, 2);
+        return checkIfTxFailed(api, txHash, options.gas)
+        .then((hasFailed) => {
+          if (hasFailed) {
+            throw new Error('Transaction failed, all gas used up.');
+          }
+          this.step = POSTED_CONFIRMATION;
+          return waitForConfirmations(api, txHash, 1);
+        });
       })
       .then(() => {
         this.step = DONE;