Electrum wallet fixes security flaw after hackers steal Bitcoin

Electrum has released version 4.8.3 to fix a high-severity Bitcoin wallet vulnerability that malicious servers have exploited to redirect user payments, with developers confirming at least one case of stolen funds. Summary Electrum released version 4.8.3 after confirming that malicious servers were exploiting a high-severity vulnerability. Attackers replaced pending Bitcoin payments with fraudulent transactions that users could mistakenly authorize through fee bumps. Two users reported incidents, including one who lost Bitcoin after increasing a transaction fee. The vulnerability affected every Electrum version before 4.8.3; developers have not disclosed total losses. The security patch verifies signatures on unconfirmed transactions spending coins controlled by the wallet. According to the wallet’s October 24 security advisory, attackers exploited how Electrum handled unconfirmed Bitcoin transactions, replacing legitimate outgoing payments with fraudulent ones that users could accidentally authorize while increasing transaction fees. Electrum is a lightweight Bitcoin wallet that connects to external servers for transaction histories, broadcasting and other network information. Unl...