ELECTRUM BITCOIN WALLET CONFIRMS CRITICAL SECURITY VULNERABILITY EXPLOITED IN THE WILD Electrum has disclosed a high-severity vulnerability allowing malicious servers to trick users into sending Bitcoin to an attacker when increasing a transaction fee. The attack works by intercepting a broadcast transaction and replacing it in the wallet’s history with a fake transaction redirecting funds to an attacker-controlled address. If the user attempts to increase the fee using Replace-by-Fee (RBF), Electrum can sign the malicious transaction, sending the Bitcoin to the attacker. Electrum confirmed two reported incidents, including one user who lost funds. Attackers even generated addresses matching the last four characters of the intended recipient’s address. The vulnerability affects versions before 4.8.3 and has been patched in the latest release. Users are urged to update immediately and verify all destination addresses and amounts before signing transactions.

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