diff --git a/src/main/java/org/qortal/transaction/TransferPrivsTransaction.java b/src/main/java/org/qortal/transaction/TransferPrivsTransaction.java
index 3fedfcb4..d64e953e 100644
--- a/src/main/java/org/qortal/transaction/TransferPrivsTransaction.java
+++ b/src/main/java/org/qortal/transaction/TransferPrivsTransaction.java
@@ -7,6 +7,7 @@ import java.util.List;
 import org.apache.logging.log4j.LogManager;
 import org.apache.logging.log4j.Logger;
 import org.qortal.account.Account;
+import org.qortal.asset.Asset;
 import org.qortal.block.BlockChain;
 import org.qortal.crypto.Crypto;
 import org.qortal.data.account.AccountData;
@@ -60,6 +61,10 @@ public class TransferPrivsTransaction extends Transaction {
 		if (this.repository.getAccountRepository().accountExists(this.transferPrivsTransactionData.getRecipient()))
 			return ValidationResult.ACCOUNT_ALREADY_EXISTS;
 
+		// Check sender has funds for fee
+		if (getSender().getConfirmedBalance(Asset.QORT) < this.transferPrivsTransactionData.getFee())
+			return ValidationResult.NO_BALANCE;
+
 		return ValidationResult.OK;
 	}
 
diff --git a/src/test/java/org/qortal/test/TransferPrivsTests.java b/src/test/java/org/qortal/test/TransferPrivsTests.java
index 5b483882..f2779caf 100644
--- a/src/test/java/org/qortal/test/TransferPrivsTests.java
+++ b/src/test/java/org/qortal/test/TransferPrivsTests.java
@@ -10,6 +10,7 @@ import org.qortal.block.BlockChain;
 import org.qortal.block.BlockMinter;
 import org.qortal.data.account.AccountData;
 import org.qortal.data.transaction.BaseTransactionData;
+import org.qortal.data.transaction.PaymentTransactionData;
 import org.qortal.data.transaction.TransactionData;
 import org.qortal.data.transaction.TransferPrivsTransactionData;
 import org.qortal.repository.DataException;
@@ -20,6 +21,7 @@ import org.qortal.test.common.BlockUtils;
 import org.qortal.test.common.Common;
 import org.qortal.test.common.TestAccount;
 import org.qortal.test.common.TransactionUtils;
+import org.qortal.test.common.transaction.TestTransaction;
 import org.qortal.transform.Transformer;
 import org.qortal.utils.Amounts;
 
@@ -45,6 +47,31 @@ public class TransferPrivsTests extends Common {
 		Common.orphanCheck();
 	}
 
+	@Test
+	public void testNewAccountsTransferPrivs() throws DataException {
+		Random random = new Random();
+
+		try (final Repository repository = RepositoryManager.getRepository()) {
+			TestAccount alice = Common.getTestAccount(repository, "alice");
+
+			PrivateKeyAccount mintingAccount = Common.getTestAccount(repository, "alice-reward-share");
+
+			byte[] randomPrivateKey = new byte[Transformer.PRIVATE_KEY_LENGTH];
+			random.nextBytes(randomPrivateKey);
+			PrivateKeyAccount randomAccount = new PrivateKeyAccount(repository, randomPrivateKey);
+
+			// Alice sends random account an amount less than fee
+			TransactionData transactionData = new PaymentTransactionData(TestTransaction.generateBase(alice), randomAccount.getAddress(), 1L);
+			TransactionUtils.signAndMint(repository, transactionData, alice);
+
+			byte[] recipientPublicKey = new byte[Transformer.PUBLIC_KEY_LENGTH];
+			random.nextBytes(recipientPublicKey);
+			PublicKeyAccount recipientAccount = new PublicKeyAccount(repository, recipientPublicKey);
+
+			combineAccounts(repository, randomAccount, recipientAccount, mintingAccount);
+		}
+	}
+
 	@Test
 	public void testAliceIntoNewAccountTransferPrivs() throws DataException {
 		try (final Repository repository = RepositoryManager.getRepository()) {