Hyundai and Kia are being forced to retrofit millions of vehicles with new anti-theft hardware after a social media fueled crime wave turned some of their most popular models into the easiest cars in America to steal. The companies are now spending millions of dollars on repairs, restitution and future safeguards in an attempt to close a security gap that regulators say should never have existed in the first place.
What began as a viral stunt has become a sweeping legal and financial reckoning, with state attorneys general, city leaders and victims pressing Hyundai and Kia to pay for years of thefts tied to cars that lacked basic immobilizer technology. I see the resulting settlement as a rare moment when regulators, courts and consumers have pushed a global automaker to rewrite its cost calculations around safety and crime prevention.
The viral theft wave that exposed a design failure
The crisis traces back to a simple vulnerability: millions of Hyundai and Kia vehicles were sold without engine immobilizers that had become standard across much of the industry. Thieves learned they could break into certain models, rip off the steering column cover, and start the engine by manipulating the ignition cylinder with a USB cable and a screwdriver, a method that state officials say helped explain why Thefts of Hyundai and Kia vehicles soared.
Videos of the so called “Kia Boys” exploiting this flaw spread rapidly, turning a niche criminal trick into a nationwide trend that hit cities from Chicago to Minneapolis. A group of state attorneys general later described how the auto theft surge was “fueled by Kia Boys” style joyriding, noting that A group of state attorneys general ultimately banded together to confront Hyundai and Kia over the fallout.
How many cars are affected, and where
Regulators now say the scale of the problem is staggering. About 9 million eligible vehicles were sold nationwide, a figure that underscores how deeply the immobilizer gap was baked into Hyundai and Kia’s product planning over much of the last decade. State officials have emphasized that About 9 million cars on U.S. roads will now need some form of anti-theft upgrade.
The settlement’s reach is national, but some states have been especially vocal because of the intensity of the theft wave and the number of affected owners. Officials in places like New Jersey, New York and Pennsylvania have highlighted that Hyundai and Kia will repair millions of vehicles under a deal that covers owners across those states and beyond, reflecting how widely the vulnerable models were marketed.
The multistate legal offensive against Hyundai and Kia
State attorneys general framed the theft surge not as an unfortunate side effect of social media, but as the predictable result of corporate decisions to cut corners on basic security. In Minnesota, Attorney General Ellison leads a multistate settlement with Attorney General Ellison
Other states echoed that critique, arguing that the companies’ security features lagged far behind industry norms and that the resulting crime wave strained police, courts and city budgets. In New Hampshire, a statement titled Attorney General Formella Secures Multistate Settlement Requiring Hyundai and Kia to Fix Anti Theft Failures at no cost to consumers explicitly accused the automakers of allowing security that “lagged far behind industry standards,” a phrase that captures the legal theory underpinning the settlement.
The settlement: free hardware fixes and restitution
The resulting agreement is sweeping. The multi state settlement requires Hyundai and Kia to provide a free hardware fix for affected vehicles, pay millions in restitution to owners and states, and commit to improving public safety and preventing reckless joyriding. Officials have stressed that The multi state settlement requires Hyundai and Kia
Financially, the deal is structured around both direct consumer payments and broader restitution. Under the settlement, Under the terms Hyundai and Kia must provide up to $4.5 m in restitution to consumers whose vehicles were stolen or damaged, with officials also citing a total of $4.5 million in available payments to help cover repairs and the costs of submitting restitution claims.
What the hardware fix actually changes
For owners, the most tangible part of the settlement is the physical repair. The agreement requires Hyundai and Kia to install zinc reinforced sleeves around the ignition cylinder on millions of vehicles, a change designed to prevent thieves from easily breaking the housing and starting the car with improvised tools. Reporting on the technical details notes that Hardware Fixes and Consumer Deadlines The settlement requires Hyundai and Kia to complete these hardware upgrades within a specified window to receive coverage.
These repairs are now required for roughly 9 million cars in the United States, and similar obligations are emerging in Canada. In that market, regulators have said Hyundai and Kia must add an anti theft device to about 400,000 vehicles that can be stolen with a USB cable and a screwdriver, with officials stressing that The repairs are now required
Who gets paid, and how much
Beyond the hardware, the settlement sets aside cash for people whose lives were upended by thefts. Kia and Hyundai owners in New York, for example, may be entitled to settlement money if their cars were stolen, damaged or if they incurred out of pocket costs for security measures. Guidance for drivers explains that Kia, Hyundai owners can seek payments that may help cover losses tied to specific models, including a 2011 2019 Hyundai Sonata.
Nationally, Hyundai and Kia will also pay up to $9 million in restitution to consumers and to states to defray the costs of the theft crisis, on top of the hundreds of millions they are spending on hardware retrofits and other remedies. Analysts have noted that Hyundai and Kia will also
Free fixes for current owners and future buyers
For drivers still behind the wheel of vulnerable models, the most immediate question is whether they will have to pay for the upgrade. Hyundai and Kia have now committed to offering a free fix for millions of vehicles after the theft surge, including about 3.1 million U.S. vehicles that will receive new anti theft hardware or enhanced software at no cost. Company statements emphasize that Hyundai and Kia offer free
The deal also looks forward, not just backward. Under the agreement, Hyundai, Kia agree to $9M settlement expanding anti theft fixes for millions of vehicles and committing to equip all future Hyundai and Kia models sold in the United States with industry standard immobilizers and related security features. Settlement documents explain that Hyundai, Kia agree to $9M in payments while also pledging to Equip all future Hyundai vehicles with more robust anti theft technology so that the gap that fueled the Kia Boys era does not reappear in the next product cycle.
How the deal came together on the ground
The legal negotiations were not abstract. They were shaped by testimony from victims and local officials who saw the theft wave up close. In Minnesota, for instance, state leaders were joined by Twin Cities officials and a woman whose mother was killed when a stolen Kia crashed into her parents’ vehicle, a reminder that the crisis was not just about property crime but about lives lost. Coverage of the announcement notes that Twin Cities leaders stood alongside victims as Hyundai and Kia agree to repair millions of vehicles under the settlement.
Politically, the case became a test of how far states could go in forcing global automakers to fix design flaws that have public safety consequences. A group of attorneys general announced the nationwide settlement on a Tuesday, underscoring that Tuesday was the moment when Hyundai and Kia formally agreed to provide free anti theft technology and restitution in response to the auto theft surge fueled by Kia Boys style crimes.
Brand damage and the fight to rebuild trust
The reputational fallout for Hyundai and Kia has been severe. Images of a Kia at the Los Angeles Auto Show at the Los Angeles Convention Center on Nov. 28, 2025, captured by photographer Myung J. Chun, circulated alongside stories about the settlement, visually juxtaposing the company’s polished marketing with the gritty reality of its theft problem. Reports on the deal have repeatedly referenced how Kia at the Los Angeles Auto Show
At the same time, the companies are trying to turn the page by emphasizing cooperation and future safety. Hyundai and Kia will repair millions of vehicles under a deal to fix anti theft technology, a phrase that now appears in official statements and consumer outreach materials as they invite owners into dealerships for free upgrades. One widely cited summary notes that Hyundai and Kia will repair millions of vehicles under the settlement, a scale of remedial work that could, over time, help rebuild some of the trust lost during the theft surge.
What this means for car security standards
Beyond Hyundai and Kia, the settlement sends a clear signal to the rest of the auto industry. Regulators have now shown they are willing to treat missing immobilizers and similar omissions as consumer protection issues, not just engineering choices. In New Hampshire, for example, the requirement that Hyundai and Kia Fix Anti Theft Failures at no cost to owners is spelled out in a document titled Fix Anti
For consumers, the message is that basic anti theft technology is no longer optional, and that they can expect regulators to step in when automakers fall short. A separate summary of the deal notes that a group of state attorneys general required Hyundai and Kia
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