diff --git a/frappe/auth.py b/frappe/auth.py
index 35e07236bb..4b53e76533 100644
--- a/frappe/auth.py
+++ b/frappe/auth.py
@@ -20,7 +20,7 @@ from frappe.twofactor import (
 )
 from frappe.utils import cint, date_diff, datetime, get_datetime, today
 from frappe.utils.deprecations import deprecation_warning
-from frappe.utils.password import check_password
+from frappe.utils.password import check_password, get_decrypted_password
 from frappe.website.utils import get_home_page
 
 SAFE_HTTP_METHODS = frozenset(("GET", "HEAD", "OPTIONS"))
@@ -574,6 +574,11 @@ def validate_auth():
 		validate_oauth(authorization_header)
 		validate_auth_via_api_keys(authorization_header)
 
+		# If login via bearer, basic or keypair didn't work then authentication failed and we
+		# should terminate here.
+		if frappe.session.user in ("", "Guest"):
+			raise frappe.AuthenticationError
+
 	validate_auth_via_hooks()
 
 
@@ -588,6 +593,9 @@ def validate_oauth(authorization_header):
 	from frappe.integrations.oauth2 import get_oauth_server
 	from frappe.oauth import get_url_delimiter
 
+	if authorization_header[0].lower() != "bearer":
+		return
+
 	form_dict = frappe.local.form_dict
 	token = authorization_header[1]
 	req = frappe.request
@@ -613,7 +621,7 @@ def validate_oauth(authorization_header):
 			frappe.set_user(frappe.db.get_value("OAuth Bearer Token", token, "user"))
 			frappe.local.form_dict = form_dict
 	except AttributeError:
-		pass
+		raise frappe.AuthenticationError
 
 
 def validate_auth_via_api_keys(authorization_header):
@@ -639,15 +647,17 @@ def validate_auth_via_api_keys(authorization_header):
 			frappe.InvalidAuthorizationToken,
 		)
 	except (AttributeError, TypeError, ValueError):
-		pass
+		raise frappe.AuthenticationError
 
 
 def validate_api_key_secret(api_key, api_secret, frappe_authorization_source=None):
 	"""frappe_authorization_source to provide api key and secret for a doctype apart from User"""
 	doctype = frappe_authorization_source or "User"
 	doc = frappe.db.get_value(doctype=doctype, filters={"api_key": api_key}, fieldname=["name"])
+	if not doc:
+		raise frappe.AuthenticationError
 	form_dict = frappe.local.form_dict
-	doc_secret = frappe.utils.password.get_decrypted_password(doctype, doc, fieldname="api_secret")
+	doc_secret = get_decrypted_password(doctype, doc, fieldname="api_secret")
 	if api_secret == doc_secret:
 		if doctype == "User":
 			user = frappe.db.get_value(doctype="User", filters={"api_key": api_key}, fieldname=["name"])
@@ -656,6 +666,8 @@ def validate_api_key_secret(api_key, api_secret, frappe_authorization_source=Non
 		if frappe.local.login_manager.user in ("", "Guest"):
 			frappe.set_user(user)
 		frappe.local.form_dict = form_dict
+	else:
+		raise frappe.AuthenticationError
 
 
 def validate_auth_via_hooks():
diff --git a/frappe/tests/test_api.py b/frappe/tests/test_api.py
index 9b14b308ed..b415a57f77 100644
--- a/frappe/tests/test_api.py
+++ b/frappe/tests/test_api.py
@@ -278,6 +278,14 @@ class TestMethodAPI(FrappeAPITestCase):
 		self.assertEqual(response.status_code, 200)
 		self.assertEqual(response.json["message"], "Administrator")
 
+		authorization_token = f"{api_key}:INCORRECT"
+		response = self.get(self.method_path("frappe.auth.get_logged_user"))
+		self.assertEqual(response.status_code, 401)
+
+		authorization_token = f"NonExistentKey:INCORRECT"
+		response = self.get(self.method_path("frappe.auth.get_logged_user"))
+		self.assertEqual(response.status_code, 401)
+
 		authorization_token = None
 
 	def test_404s(self):
diff --git a/frappe/tests/test_frappe_client.py b/frappe/tests/test_frappe_client.py
index c8f3bee3d9..e1886fcbf0 100644
--- a/frappe/tests/test_frappe_client.py
+++ b/frappe/tests/test_frappe_client.py
@@ -196,7 +196,7 @@ class TestFrappeClient(FrappeTestCase):
 		api_secret = "ksk&93nxoe3os"
 		header = {"Authorization": f"token {api_key}:{api_secret}"}
 		res = requests.post(get_url() + "/api/method/frappe.auth.get_logged_user", headers=header)
-		self.assertEqual(res.status_code, 403)
+		self.assertEqual(res.status_code, 401)
 
 		# random api key and api secret
 		api_key = "@3djdk3kld"