diff --git a/src/carrot_core/scan.cpp b/src/carrot_core/scan.cpp
index cc21fd4ce..6a9a8edf6 100644
--- a/src/carrot_core/scan.cpp
+++ b/src/carrot_core/scan.cpp
@@ -475,6 +475,10 @@ bool try_scan_carrot_enote_internal_receiver(const CarrotEnoteV1 &enote,
     crypto::public_key &return_address_out,
     bool &is_return_out)
 {
+    // Determine whether this is a full wallet or a watch-only wallet
+    const cryptonote::account_keys &keys = account.get_keys();
+    bool watch_only = (keys.m_spend_secret_key == crypto::null_skey && keys.m_view_secret_key == crypto::null_skey);
+    
     // input_context
     const input_context_t input_context = make_carrot_input_context(enote.tx_first_key_image);
 
@@ -520,27 +524,38 @@ bool try_scan_carrot_enote_internal_receiver(const CarrotEnoteV1 &enote,
             // compute K_r = K_return + K_o
             crypto::public_key K_r = rct::rct2pk(rct::addKeys(rct::pk2rct(K_return), rct::pk2rct(enote.onetime_address)));
 
-            // calculate the key image for the return output
-            crypto::secret_key sum_g;
-            sc_add(to_bytes(sum_g), to_bytes(sender_extension_g_out), to_bytes(k_return));
-            crypto::key_image key_image = account.derive_key_image(
-                address_spend_pubkey_out, // THIS WAS WRONG!!! -> account.get_keys().m_carrot_account_address.m_spend_public_key,
-                sum_g,
-                sender_extension_t_out,
-                K_r
-            );
+            // Is this a watch-only wallet?
+            if (watch_only) {
 
-            crypto::secret_key x, y;
-            account.try_searching_for_opening_for_onetime_address(
-                address_spend_pubkey_out, // THIS WAS WRONG!!! -> account.get_keys().m_carrot_account_address.m_spend_public_key,
-                sum_g,
-                sender_extension_t_out,
-                x,
-                y
-            );
-
-            // save the input context & change output key
-            account.insert_return_output_info({{K_r, {input_context, output_key, enote.onetime_address, key_image, x, y}}});
+              // HERE BE DRAGONS!!!
+              // SRCG: test whether this will even work for return_payment detection
+              account.insert_return_output_info({{K_r, {input_context, output_key, enote.onetime_address, crypto::key_image{}, crypto::null_skey, crypto::null_skey}}});
+              // LAND AHOY!!!
+              
+            } else {
+              
+              // calculate the key image for the return output
+              crypto::secret_key sum_g;
+              sc_add(to_bytes(sum_g), to_bytes(sender_extension_g_out), to_bytes(k_return));
+              crypto::key_image key_image = account.derive_key_image(
+                                                                     address_spend_pubkey_out, // THIS WAS WRONG!!! -> account.get_keys().m_carrot_account_address.m_spend_public_key,
+                                                                     sum_g,
+                                                                     sender_extension_t_out,
+                                                                     K_r
+                                                                     );
+              
+              crypto::secret_key x, y;
+              account.try_searching_for_opening_for_onetime_address(
+                                                                    address_spend_pubkey_out, // THIS WAS WRONG!!! -> account.get_keys().m_carrot_account_address.m_spend_public_key,
+                                                                    sum_g,
+                                                                    sender_extension_t_out,
+                                                                    x,
+                                                                    y
+                                                                    );
+              
+              // save the input context & change output key
+              account.insert_return_output_info({{K_r, {input_context, output_key, enote.onetime_address, key_image, x, y}}});
+            }
         }
 
         // janus protection checks are not needed for internal scans