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Electrum is a popular software wallet that works by connecting to a dedicated server. These servers receive a hash of the Bitcoin address in the wallet and reply with transaction information. Electrum wallets are fast and have few resources, but by default, it connects to these servers and can easily monitor users. In addition to Electrum, some other software uses public Electrum servers. By 2019, it is a faster and better alternative to BIP37.

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June 28 (Xinhua) -- Bitcoin desktop wallet client Electrum has released a 4.0 beta version, adding several important updates to support the Lightning network. Electrum primarily adds features such as PSBT (partially signed Bitcoin transactions), Lightning Network, watchtowers (暸 watchtowers), and Submarine Swaps (subliminal switching).

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According to Reddit user u/normal_rc, electrum's wallet was hacked and nearly 250 bitcoins (243.6 BTCs, nearly $1 million) were maliciously stolen, according to coinelegraph. Electrum then confirmed that the attack included creating a fake version of the wallet to trick users into providing password information. Electrum responded on Twitter that "this is a persistent phishing attack on Electrum users" and warned users not to download Electrum from any source other than the official website.

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Abstract: On December 27, commentators reported on social media that a malicious group hacking the cryptocurrency wallet Electrum had stolen nearly 250 bitcoins (about $937,000). The attack was later confirmed by Electrum, which created a fake version of the wallet to trick users into providing password information. "Hackers set up a bunch of malicious servers," Reddit user u/normal_r.