“Hyundai and Kia Agree to $200 Million Settlement Over ‘KIA Challenge’ TikTok Car Theft Scheme”

South Korean automakers Hyundai and Kia have agreed to a $200 million settlement stemming from a class-action lawsuit over a spate of car thefts sparked by social media TikTok. The so-called “Kia Challenge” on social media platforms has led to hundreds of auto thefts nationwide, including at least 14 reports of crashes and eight fatalities, NHTSA said.

According to comprehensive foreign media reports, the thief known as “Kia Boy” previously released instructional videos on YouTube and TikTok, explaining how to use simple tools such as USB cables to bypass the vehicle’s security system. The thefts are believed to be easy because many Hyundai and Kia vehicles built between 2015 and 2019 lack electronic immobilizers that would prevent thieves from breaking in and bypassing the ignition.

However, the settlement only applies to about 9 million vehicles that lack push-button ignition and immobilizers. In February, the companies also provided a free software update that increased the length of the siren sound from 30 seconds to one minute and required the key to be inserted in the ignition to start the vehicle. The settlement also reportedly includes up to $145 million in out-of-pocket losses for consumers whose cars were stolen.

“We appreciate the opportunity to provide additional support to our vehicle owners who have been impacted by the increased and ongoing criminal activity targeting our vehicles,” Jason Erb, Hyundai Motor North America’s chief legal officer, said in a statement. .Customer safety remains a top priority.” Hyundai and Kia also provide some owners with wheel locks to deter theft. The two companies have issued 26,000 wheel locks since November 2022, NHTSA said.