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Default 2005 Prius - Key Fob randomly activates alarm

So 2005 Prius. 220K miles. Smart/Keyless entry. 2 Key Fobs. 1 of them, the one I carry, got really banged up and the front rubber/plastic cover deteriorated to where the button covers were gone and one could see the circuit board underneath. I never use the buttons so didn't bother with it. About a month ago, sporadically when I approached the car the panic alarm would go off.

Immediate thought is that the button is getting pressed in my pocket. However I was able to replicate it with the FOB in the palm of my hand face up with nothing touching any buttons.

Next thought is/was that dust/dirt must be shorting out the panic button. Ordered a new Key Fob case from amazon, disassembled the old FOB, cleaned the board with isopropyl and q-tips. I still have the issue.

I can see the little indicator light on the key fob blinking Red when I approach the car. The keys, otherwise, still work fine. The second key FOB, carried by my wife, doesn't do this at all.

Any suggestions other than dropping $$$ to buy a replacement FOB? Disabling the panic alarm altogether is def. an option if It's DIYable. I have no need for any alarms on this car.
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