El Salvador: Incidence of Identity Theft in Chivo Wallet Increases to Obtain the $30 Bonus

The claim by El Salvador President, Nayib Bukele, that about a third of Salvadorans are utilizing the Chivo wallet may be true, but a new report suggests that many people registered on the app were onboarded without their consent. Local media platform, Elsalvador.com highlights that the incidence of identity theft is soaring in the nation, as fraudsters are using people’s identities to open accounts in order to obtain the promised $30 bonus.

While identity theft is common in the digital ecosystem, the concerns for this theft in El Salvador would have been mild, but those concerned fear that their personal data may further be used by these criminals in financial-related crimes which may land them in trouble. 

“By impersonating or stealing our identity, our personal data (DUI) could be linked to a user profile and activities that we have not carried out or consented to. We could be involved in criminal investigations if our DUI is linked to suspicious, criminal, or questionable activities, ”explained attorney Laura Hernández, technology specialist and public policy analyst. 

The unauthorized access to users’ data has been corroborated by many citizens, including economist Tatiana Marroquín posted on her Twitter account: “Due to the large number of complaints of data spoofing in the Chivo wallet, I requested help to verify if my DUI had been registered without my authorization. I have not downloaded the application on my cell phone, nor have I registered my DUI in any way; but it appears already active.”

El Salvador Chivo Wallet Was Faulty From the Start

The design of the Chivo wallet has been judged to be faulty from the beginning as many users reported bad user experiences operating the wallet since the government launched it back in September. The entire country’s Bitcoin pursuit has been criticized by industry veterans including Vitalik Buterin. The current report of identity theft further validates the criticisms.

Network experts said the app grants access to users’ contacts and the phone’s voice recorder, two features that presented it as a red flag for all users. The app has also been proven to exhibit difficulty in verifying users’ identities which further makes it unsafe.

“Since September 8, it became known that it was possible to use other people’s DUIs (to register). Even verification through photography was failing. What should have been done is to shut down the application and correct such errors. As far as I understand this has not yet been corrected, ”Hernández explained.

The government has not taken a proactive step to stop the usage of the app at the time of writing, and per the identity theft being recorded, the number of app users is significantly lower than anticipated despite the enticing incentives attached to the use of the wallet.