diff --git a/README.md b/README.md
index 8fd7a24..520acb0 100644
--- a/README.md
+++ b/README.md
@@ -36,7 +36,6 @@ Being developed on Ubuntu 18.04.
 
 ### What could be done next
 
-* Differentiate between phone not connected and stored session rejected.
 * Support group conversations properly.
 * Implement receiving audio, media, and document messages.
 * Wait for server message received acknowledgement before displaying sent message locally.
diff --git a/libgowhatsapp.c b/libgowhatsapp.c
index 3bd9cb1..46ad30d 100644
--- a/libgowhatsapp.c
+++ b/libgowhatsapp.c
@@ -177,7 +177,13 @@ gowhatsapp_eventloop(gpointer userdata)
         }
         switch(gwamsg.msgtype) {
             case gowhatsapp_message_type_error:
-                purple_connection_error(pc, PURPLE_CONNECTION_ERROR_NETWORK_ERROR, gwamsg.text);
+                if (strstr(gwamsg.text, "401")) {
+                    // received error mentioning 401 – assume login failed and try again without stored session
+                    gowhatsapp_go_login((uintptr_t)pc, NULL, NULL, NULL, NULL, NULL, NULL);
+                    // alternatively let the user handle the session reset and just display purple_connection_error(pc, PURPLE_CONNECTION_ERROR_AUTHENTICATION_FAILED, gwamsg.text);
+                } else {
+                    purple_connection_error(pc, PURPLE_CONNECTION_ERROR_NETWORK_ERROR, gwamsg.text);
+                }
                 break;
             case gowhatsapp_message_type_session:
                 purple_account_set_string(pc->account, GOWHATSAPP_SESSION_CLIENDID_KEY, gwamsg.clientId);