Geologic storage of carbon dioxide can efficiently contribute to reduce greenhouse gas emissions to the atmosphere. Two major hazards of this technology are leakage towards the ground surface and fluid-induced seismicity. While major faults may be detected and avoided during site characterization, undetected subseismic faults could be encountered once injection has started. This paper investigates leakage and reactivation of undetected faults through coupled thermal–hydraulic–mechanical modeling. The simulations are performed using a recently developed sequential simulator, TOUGH-Pylith, that allows to accurately account for the thermodynamics of brine-CO2 mixtures, and to model faults as surfaces of discontinuity using state-of-the-art fault friction laws. The simulator is benchmarked against well-known analytical solutions and subsequently applied to investigate two cases of CO2 injection close to undetected faults under normal and strike-slip faulting regimes. Although the scenarios are generic and represent unfavorable conditions, they suggest that leakage could occur and that undetected faults could trigger minor seismic events. Therefore, careful site characterization and continuous monitoring during operations should be always performed.