diff --git a/include/xrpl/protocol/TER.h b/include/xrpl/protocol/TER.h
index 6a20f76ea3..b87bc3f8a4 100644
--- a/include/xrpl/protocol/TER.h
+++ b/include/xrpl/protocol/TER.h
@@ -225,6 +225,8 @@ enum TERcodes : TERUnderlyingType {
     terQUEUED,       // Transaction is being held in TxQ until fee drops
     terPRE_TICKET,   // Ticket is not yet in ledger but might be on its way
     terNO_AMM,       // AMM doesn't exist for the asset pair
+    terADDRESS_COLLISION,  // Failed to allocate AccountID when trying to
+                           // create a pseudo-account
 };
 
 //------------------------------------------------------------------------------
diff --git a/src/libxrpl/protocol/TER.cpp b/src/libxrpl/protocol/TER.cpp
index 87e07bc7c9..d14d8e3861 100644
--- a/src/libxrpl/protocol/TER.cpp
+++ b/src/libxrpl/protocol/TER.cpp
@@ -231,6 +231,7 @@ transResults()
         MAKE_ERROR(terQUEUED,                 "Held until escalated fee drops."),
         MAKE_ERROR(terPRE_TICKET,             "Ticket is not yet in ledger."),
         MAKE_ERROR(terNO_AMM,                 "AMM doesn't exist for the asset pair."),
+        MAKE_ERROR(terADDRESS_COLLISION,      "Failed to allocate an unique account address"),
 
         MAKE_ERROR(tesSUCCESS,                "The transaction was applied. Only final in a validated ledger."),
     };
diff --git a/src/xrpld/app/tx/detail/VaultCreate.cpp b/src/xrpld/app/tx/detail/VaultCreate.cpp
index d2f9736e5b..1abfbccdd7 100644
--- a/src/xrpld/app/tx/detail/VaultCreate.cpp
+++ b/src/xrpld/app/tx/detail/VaultCreate.cpp
@@ -119,6 +119,12 @@ VaultCreate::preclaim(PreclaimContext const& ctx)
             return tecOBJECT_NOT_FOUND;
     }
 
+    auto sequence = ctx.tx.getSeqValue();
+    if (auto const accountId = pseudoAccountAddress(
+            ctx.view, keylet::vault(account, sequence).key);
+        accountId == beast::zero)
+        return terADDRESS_COLLISION;
+
     return tesSUCCESS;
 }
 
diff --git a/src/xrpld/ledger/View.h b/src/xrpld/ledger/View.h
index 3232b023e7..ea2eee098c 100644
--- a/src/xrpld/ledger/View.h
+++ b/src/xrpld/ledger/View.h
@@ -488,6 +488,9 @@ describeOwnerDir(AccountID const& account);
 [[nodiscard]] TER
 dirLink(ApplyView& view, AccountID const& owner, std::shared_ptr<SLE>& object);
 
+AccountID
+pseudoAccountAddress(ReadView const& view, uint256 const& pseudoOwnerKey);
+
 // Which of the owner-object fields should we set: sfAMMID, sfVaultID
 enum class PseudoAccountOwnerType : int { AMM, Vault };
 
diff --git a/src/xrpld/ledger/detail/View.cpp b/src/xrpld/ledger/detail/View.cpp
index 39e2c4d665..c752ac2963 100644
--- a/src/xrpld/ledger/detail/View.cpp
+++ b/src/xrpld/ledger/detail/View.cpp
@@ -1037,29 +1037,31 @@ dirLink(ApplyView& view, AccountID const& owner, std::shared_ptr<SLE>& object)
     return tesSUCCESS;
 }
 
+AccountID
+pseudoAccountAddress(ReadView const& view, uint256 const& pseudoOwnerKey)
+{
+    AccountID ret = beast::zero;
+    // This number must not be changed without an amendment
+    constexpr int maxAccountAttempts = 256;
+    for (auto i = 0; i < maxAccountAttempts; ++i)
+    {
+        ripesha_hasher rsh;
+        auto const hash = sha512Half(i, view.info().parentHash, pseudoOwnerKey);
+        rsh(hash.data(), hash.size());
+        ret = static_cast<ripesha_hasher::result_type>(rsh);
+        if (!view.read(keylet::account(ret)))
+            return ret;
+    }
+    return ret;
+}
+
 Expected<std::shared_ptr<SLE>, TER>
 createPseudoAccount(
     ApplyView& view,
     uint256 const& pseudoOwnerKey,
     PseudoAccountOwnerType type)
 {
-    auto const accountId = [&]() -> AccountID {
-        AccountID ret = beast::zero;
-        // This number must not be changed without an amendment
-        constexpr int maxAccountAttempts = 256;
-        for (auto i = 0; i < maxAccountAttempts; ++i)
-        {
-            ripesha_hasher rsh;
-            auto const hash =
-                sha512Half(i, view.info().parentHash, pseudoOwnerKey);
-            rsh(hash.data(), hash.size());
-            ret = static_cast<ripesha_hasher::result_type>(rsh);
-            if (!view.read(keylet::account(ret)))
-                return ret;
-        }
-        return ret;
-    }();
-
+    auto const accountId = pseudoAccountAddress(view, pseudoOwnerKey);
     if (accountId == beast::zero)
         return Unexpected(tecDUPLICATE);