Psychological theory and research suggest that religious individuals could have differences in the appraisal of immoral behaviours and cognitions compared to non-religious individuals. This effect could occur due to adherence to prescriptive and inviolate deontic religious-moral rules and socio-evolutionary factors, such as increased autonomic nervous system responsivity to indirect threat. The latter thesis has been used to suggest that immoral elicitors could be processed subliminally by religious individuals. In this manuscript, we employed masking to test this hypothesis. We rated and pre-selected IAPS images for moral impropriety. We presented these images masked with and without negatively manipulating a pre-image moral label. We measured detection, moral appraisal and discrimination, and physiological responses. We found that religious individuals experienced higher responsivity to masked immoral images. Bayesian and hit-versus-miss response analyses revealed that the differences in appraisal and physiological responses were reported only for consciously perceived immoral images. Our analysis showed that when a negative moral label was presented, religious individuals experienced the interval following the label as more physiologically arousing and responded with lower specificity for moral discrimination. We propose that religiosity involves higher conscious perceptual and physiological responsivity for discerning moral impropriety but also higher susceptibility for the misperception of immorality.