TL; DR breakdown
- Hackers use El Salvador wallets to commit fraud through Chivo’s new wallet.
- Hackers are also targeting government free bitcoins.
Recent reports indicate that hackers are impersonating several El Salvadores. Earlier last month, El Salvador made history by becoming the first economy to introduce the legal tender currency Bitcoin (BTC).
Citizens were already loaded with a bitcoin wallet known as Chivo. However, the authentication system does not work as expected. A person or group of hackers stole people’s identities before registering.
The hackers’ motivation stems from the free bitcoins loaded into each wallet. President Nayib Bukele provided $ 30 of bitcoin per person to encourage his citizens to use the wallet.
Chivo Wallet could have planned better
The introduction of BTC as legal tender seemed hasty. Vice President Buckle backed the move, noting that it would attract more investors to their economies.
However, some people disagreed with his feelings. In June, the International Monetary Fund noted that the move could raise constitutional and financial issues. JP Morgan also said that El Salvador’s economy could face serious problems due to the new wallet.
One of the citizens, Cynthia Gutierrez, did not want to use Chivo because she was not sure about it. However, a few days ago, he decided to try this program. He knew that hackers had started working with wallets related to their identity cards, which made him curious to find out about his wallet.
He was surprised when he entered his details for registration. He received a message indicating that he had already registered and linked to a wallet.
Most people in El Salvador have noticed this when trying to access Chivo.
Unfortunately, some citizens’ bank accounts have been linked to this program to withdraw money through wallets.
Reina Monti, director of human rights research at Christosal, said they had received several complaints. Monti said the organization received almost a thousand complaints in one week. As of October 14, they have been receiving reports of Chivo identity theft.
Christosal asked citizens whose information was compromised to register on a form. The human rights group announced that it was working on a collective complaint. They will present it to the imposed constitutional parliament.
Christosal will take legal action on behalf of citizens who have submitted evidence that their details have been misused. Individuals must file their complaint with their unique DUI. In addition, they should send a screenshot showing their details already used in the wallet. “By doing so, their request will be calculated,” the statement said.
Chivo’s official website shows that the steps to having an account involve scanning both sides of a DUI. In addition, face recognition is required.
However, several citizens have proven that the scammers have compromised the software. In a hilarious event, someone used a cup instead of a DUI.
The Acción Ciudadana, an anti-corruption organization in Guatemala, also monitors complaints.
About a week ago, the organization surrendered to the Attorney General. They did so after senior executives realized their identities had been compromised.
There is a lot of tension between the citizens right now. They are trying to find out if the government will offer solutions. They are eager to solve their challenges and reduce their worries.