diff --git a/.changelog/32352.txt b/.changelog/32352.txt
new file mode 100644
index 000000000000..2323a089913c
--- /dev/null
+++ b/.changelog/32352.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+provider: Correctly handle `forbidden_account_ids`
+```
diff --git a/internal/conns/config.go b/internal/conns/config.go
index 66ea3f695e35..f67418a596b6 100644
--- a/internal/conns/config.go
+++ b/internal/conns/config.go
@@ -132,7 +132,7 @@ func (c *Config) ConfigureProvider(ctx context.Context, client *AWSClient) (*AWS
 	}
 
 	if len(c.ForbiddenAccountIds) > 0 {
-		for _, forbiddenAccountID := range c.AllowedAccountIds {
+		for _, forbiddenAccountID := range c.ForbiddenAccountIds {
 			if accountID == forbiddenAccountID {
 				return nil, diag.Errorf("AWS account ID not allowed: %s", accountID)
 			}
diff --git a/internal/provider/provider.go b/internal/provider/provider.go
index 013dacf080e9..f2a0e7b042e3 100644
--- a/internal/provider/provider.go
+++ b/internal/provider/provider.go
@@ -42,7 +42,6 @@ func New(ctx context.Context) (*schema.Provider, error) {
 				Elem:          &schema.Schema{Type: schema.TypeString},
 				Optional:      true,
 				ConflictsWith: []string{"forbidden_account_ids"},
-				Set:           schema.HashString,
 			},
 			"assume_role":                   assumeRoleSchema(),
 			"assume_role_with_web_identity": assumeRoleWithWebIdentitySchema(),
@@ -87,7 +86,6 @@ func New(ctx context.Context) (*schema.Provider, error) {
 				Elem:          &schema.Schema{Type: schema.TypeString},
 				Optional:      true,
 				ConflictsWith: []string{"allowed_account_ids"},
-				Set:           schema.HashString,
 			},
 			"http_proxy": {
 				Type:     schema.TypeString,
@@ -106,14 +104,12 @@ func New(ctx context.Context) (*schema.Provider, error) {
 							Type:        schema.TypeSet,
 							Optional:    true,
 							Elem:        &schema.Schema{Type: schema.TypeString},
-							Set:         schema.HashString,
 							Description: "Resource tag keys to ignore across all resources.",
 						},
 						"key_prefixes": {
 							Type:        schema.TypeSet,
 							Optional:    true,
 							Elem:        &schema.Schema{Type: schema.TypeString},
-							Set:         schema.HashString,
 							Description: "Resource tag key prefixes to ignore across all resources.",
 						},
 					},