There are certain stories which exist across the human collective. One is the story of the bogeyman which mothers often tell their unruly children. Tata Duende is just one manifestation.
See also: A Cuca, Babau, Butzeman, El Coco, Sack Man, ...., the list goes ever on.
Side note: The AI fumbled as Tata Duende's feet should have been on backwards though the terrified child is hiding his thumbs