TikTok challenge exposes major security flaw in 2011-2022 Hyundai, Kia cars
ALBAWABA – Korean carmakers Hyundai and Kia will pay a $200 million settlement in a class action lawsuit to compensate around 9 million Hyundai and Kia owners in the United States (US), news and media outlets reported Saturday.
Millions of Hyundai and Kia car owners filed a lawsuit against the two companies after a major security flaw was exposed by a TikTok video challenge back in 2022.
The TikTok video showed persons identified as “Kia Boyz” using USB cables to hot-wire Hyundai and Kia cars.
Not long after, the video went viral. Thefts of specific Kia and Hyundai makes and models, featuring the same security flaw, surged in the US, said tech and business news website Engadget.
The carmakers rushed to put the lawsuit to sleep and declared they were ready to compensate customers who suffered “out-of-pocket” losses, due to this flaw.
Moreover, at least 14 crashes and eight deaths were linked to the viral TikTok clips, according to CNBC News.
In February, the automakers said they would offer software upgrades to 8.3 million US vehicles. These upgrades are issued specifically for cars without anti-theft immobilizers. The upgrades should help curb increasing car thefts using the method featured in the videos, the carmakers claimed.
For customers whose vehicles cannot accommodate security software upgrades, the companies will provide up to $300 each for the purchase of theft deterrent or prevention devices, as reported by CNBC.
The car owners held Hyundai and Kia responsible for the theft of millions of cars. They sued the companies for losses and damages that were not covered by insurance companies.
About $145 million, out of the $200 million settlement, will go to covering said out-of-pocket losses, CNBC explained. The companies also said they'll cover insurance deductibles, higher premiums and other related expenses.
The settlement covers a wide range of Hyundai and Kia cars released between 2011 and 2022. Including the Elantra, Santa Fe and Tucson. The 2011-2014 Genesis Coupe is also included.
The marques will pay up to $6,125 per owner for the total loss of a car, and up to $3,375 for damage to the vehicle and any personal property, Engadget said.
In a statement carried by the tech news website, the companies said they have already provided "tens of thousands" of free steering wheel locks to affected customers.
They claimed to have also provided AAA insurance options for customers who had trouble maintaining coverage.
