diff --git a/bitchat/ViewModels/ChatPeerIdentityCoordinator.swift b/bitchat/ViewModels/ChatPeerIdentityCoordinator.swift
index 2f6f7270..b67fae5f 100644
--- a/bitchat/ViewModels/ChatPeerIdentityCoordinator.swift
+++ b/bitchat/ViewModels/ChatPeerIdentityCoordinator.swift
@@ -24,6 +24,9 @@ protocol ChatPeerIdentityContext: AnyObject {
     var unreadPrivateMessages: Set<PeerID> { get }
     /// Clears the peer's unread flag (single-writer store intent).
     func markPrivateChatRead(_ peerID: PeerID)
+    /// Sets the peer's unread flag (shared requirement with the inbound DM
+    /// paths; witness on `ChatViewModel`).
+    func markPrivateChatUnread(_ peerID: PeerID)
     /// Moves all messages from `oldPeerID`'s chat into `newPeerID`'s chat
     /// (dedup by ID, order preserved, unread carried, old chat removed).
     func migratePrivateChat(from oldPeerID: PeerID, to newPeerID: PeerID)
@@ -621,12 +624,20 @@ extension ChatPeerIdentityCoordinator {
         // inherit the thread's earned trust under the same nickname. Only
         // warn when there is a conversation to protect.
         if wasSelected || !context.privateMessages(for: newPeerID).isEmpty {
+            // Offline key rotation is the common case here (a favorite came
+            // back with new keys), and resolveNickname has no mesh nickname
+            // and no social identity for a fingerprint nobody verified yet —
+            // the persisted favorite relationship still knows who this is.
+            let favoriteNickname = newPeerID.noiseKey
+                .flatMap { context.favoriteRelationship(forNoiseKey: $0)?.peerNickname }
+                .flatMap { $0.isEmpty ? nil : $0 }
+            let displayName = favoriteNickname ?? resolveNickname(for: newPeerID)
             let notice = BitchatMessage(
                 sender: "system",
                 content: String(
                     format: String(localized: "system.identity.key_changed", defaultValue: "%@'s identity key changed — this can mean a new device or a reset. earlier verification no longer applies; verify them again before trusting this chat.", comment: "Private-chat system warning after a peer's Noise identity key changed; placeholder is the peer's name"),
                     locale: .current,
-                    resolveNickname(for: newPeerID)
+                    displayName
                 ),
                 timestamp: Date(),
                 isRelay: false,
@@ -636,6 +647,12 @@ extension ChatPeerIdentityCoordinator {
                 senderPeerID: context.myPeerID
             )
             context.appendPrivateMessage(notice, to: newPeerID)
+            // A security event nobody is looking at must not stay silent:
+            // surface it through the unread indicator unless the chat is
+            // open right now.
+            if !wasSelected {
+                context.markPrivateChatUnread(newPeerID)
+            }
             context.notifyUIChanged()
         }
     }
diff --git a/bitchatTests/ChatPeerIdentityCoordinatorContextTests.swift b/bitchatTests/ChatPeerIdentityCoordinatorContextTests.swift
index d14f766a..0def7e2c 100644
--- a/bitchatTests/ChatPeerIdentityCoordinatorContextTests.swift
+++ b/bitchatTests/ChatPeerIdentityCoordinatorContextTests.swift
@@ -46,6 +46,10 @@ private final class MockChatPeerIdentityContext: ChatPeerIdentityContext {
         unreadPrivateMessages.remove(peerID)
     }
 
+    func markPrivateChatUnread(_ peerID: PeerID) {
+        unreadPrivateMessages.insert(peerID)
+    }
+
     @discardableResult
     func appendPrivateMessage(_ message: BitchatMessage, to peerID: PeerID) -> Bool {
         var chat = privateChats[peerID] ?? []
@@ -390,6 +394,35 @@ struct ChatPeerIdentityCoordinatorContextTests {
         #expect(notice?.content.contains("identity key changed") == true)
         #expect(notice?.content.contains("alice") == true)
         #expect(context.privateChats[oldPeerID] == nil)
+        // A background security event must surface via the unread indicator.
+        #expect(context.unreadPrivateMessages.contains(newPeerID))
+    }
+
+    @Test @MainActor
+    func migrateNoiseKeyUpdate_namesOfflineFavoritesFromTheRelationship() async {
+        let context = MockChatPeerIdentityContext()
+        let coordinator = ChatPeerIdentityCoordinator(context: context)
+        let oldPeerID = PeerID(str: "5555555555555555")
+        let newKey = Data(repeating: 0xCD, count: 32)
+        let newPeerID = PeerID(hexData: newKey)
+        // Offline key rotation: no mesh nickname, no social identity for the
+        // unverified new fingerprint — only the favorite relationship knows
+        // who this is.
+        context.favoriteRelationshipsByNoiseKey[newKey] = FavoritesPersistenceService.FavoriteRelationship(
+            peerNoisePublicKey: newKey,
+            peerNostrPublicKey: nil,
+            peerNickname: "carol",
+            isFavorite: true,
+            theyFavoritedUs: true,
+            favoritedAt: Date(timeIntervalSince1970: 0),
+            lastUpdated: Date(timeIntervalSince1970: 0)
+        )
+        context.privateChats[oldPeerID] = [makePrivateMessage(id: "m2", timestamp: Date(timeIntervalSince1970: 1))]
+
+        coordinator.migrateNoiseKeyUpdate(oldPeerID: oldPeerID, newPeerID: newPeerID)
+
+        let notice = (context.privateChats[newPeerID] ?? []).last
+        #expect(notice?.content.contains("carol") == true)
     }
 
     @Test @MainActor