diff --git a/modules/apps/packet-forward-middleware/keeper/keeper.go b/modules/apps/packet-forward-middleware/keeper/keeper.go
index 10488219f0c..df76f325ef7 100644
--- a/modules/apps/packet-forward-middleware/keeper/keeper.go
+++ b/modules/apps/packet-forward-middleware/keeper/keeper.go
@@ -287,8 +287,7 @@ func (k *Keeper) ForwardTransferPacket(ctx sdk.Context, inFlightPacket *types.In
 			"denom", token.Denom,
 			"error", err,
 		)
-		// TODO: Should probably have custom errors!
-		return errorsmod.Wrap(sdkerrors.ErrInsufficientFunds, err.Error())
+		return errorsmod.Wrap(types.ErrForwardTransferFailed, err.Error())
 	}
 
 	// Store the following information in keeper:
diff --git a/modules/apps/packet-forward-middleware/types/errors.go b/modules/apps/packet-forward-middleware/types/errors.go
index aa63493fafd..83b2de8055e 100644
--- a/modules/apps/packet-forward-middleware/types/errors.go
+++ b/modules/apps/packet-forward-middleware/types/errors.go
@@ -7,4 +7,5 @@ import (
 var (
 	ErrMetadataKeyNotFound    = errorsmod.Register(ModuleName, 1, "metadata key not found in packet data")
 	ErrInvalidForwardMetadata = errorsmod.Register(ModuleName, 2, "invalid forward metadata")
+	ErrForwardTransferFailed  = errorsmod.Register(ModuleName, 3, "failed to forward transfer packet")
 )