Governor Hochul, Mayor Adams Announce Plan for SPARC Kips Bay, First-of-Its-Kind Job and Education Hub for Health and Life Sciences Innovation

 

Historic Investment from City and State, in Partnership With CUNY, Will Ensure New York is a Global Leader in Accessible Life Science and Public Health Careers

New State-of-the-Art Brookdale Campus Will Create a Career Pipeline for New York City Students and Help Anchor Life Sciences Industry

Project Complements Governor Hochul's Vision to Jumpstart New York's Healthcare Sector Including $620 Million Life Science Initiative, Record Investments in CUNY and SUNY, Healthcare Worker Bonus Program

Renderings and Site Area Map Available Here

 Governor Kathy Hochul and New York City Mayor Eric Adams today announced plans for the Science Park and Research Campus Kips Bay, an innovation hub that will be the first of its kind in the state. Driven by an historic investment from the city and state, SPARC Kips Bay will make New York a global leader in creating and attracting accessible jobs in life sciences, health care, and public health by creating a pipeline from local public schools to careers in these growing and essential fields. 

"Thanks to this agreement with the city, SPARC Kips Bay will give New York's life sciences sector a major boost, creating thousands of high-paying jobs, investing in education, and making New York the place where miracles are made," Governor Hochul said. "My administration remains laser-focused on saving lives and making New York the home of the transformative fields of the future. With this project, we will achieve both of these goals at the same time."

Through a partnership with The City University of New York (CUNY), SPARC Kips Bay will generate approximately $25 billion in economic impact to the city over the next 30 years; create 10,000 jobs, including 2,000 permanent jobs; and transform Hunter College's Brookdale Campus on East 25th Street and First Avenue into new, state-of-the-art teaching and commercial facilities. This project will transform an entire city block — with over 1.5 million square feet of academic, public health, and life sciences space, more than doubling the life sciences footprint in Kips Bay — and rebuild a new accessible pedestrian bridge on East 25th street connecting to the East River and Manhattan Waterfront Greenway.

New York City Mayor Eric Adams said, "This new Science Park and Research Campus in Kips Bay will be not only a hub for the life sciences industry and an anchor for the neighborhood, but also a bridge to the future for our city's young people. SPARC Kips Bay will transform an entire city block into a state-of-the-art destination for the life sciences industry and be a place where workforce development, economic opportunity, and public health come together seamlessly — attracting businesses and uplifting New Yorkers to bring our city back stronger than ever with $25 billion in new economic activity for our city over the next three decades. Thank you to all our partners for the vision and teamwork to 'Get Stuff Done'."

SPARC Kips Bay will cultivate the next generation of the scientific research and health care workforce, creating a single campus with space for a new public high school, CUNY schools focused on healthcare, innovative health and biotech companies, and public health institutions — providing pathways to good-paying careers for New York City high school, undergraduate, and postgraduate students. CUNY will offer accessible degrees and continuing education programs in public health and medical research, including for the many young New Yorkers inspired by pandemic responders and researchers who helped develop vaccines. 

Career opportunities will range from doctors and nurses to biochemists and engineers, as well as a variety of supporting roles in the life sciences and health care fields like business managers, lawyers, and administrative assistants. With the development of new talent will come new research, translating to more companies, jobs, medicines, and advanced technologies, which will ensure New York City is the leader in developing treatments and cures for some of the most pressing public health challenges of our time. 

In addition, SPARC Kips Bay will be critical in building a more dynamic and resilient New York City economy. New York City's health care sector employs over 750,000 New Yorkers, and the metropolitan area's life sciences sector is a rapidly growing industry with nearly 150,000 additional jobs last year. The city estimates the campus' new commercial lab space will create about 2,000 quality jobs and attract new companies and startups, leading to additional good-paying jobs in the health care and life sciences fields.

SPARC Kips Bay will be anchored by new, modern facilities for over 4,500 students from the Hunter School of Nursing and School of Health Professions, the CUNY Graduate School of Public Health and Health Policy, and Borough of Manhattan Community College health care programs. The hub will also feature:

• An H+H/Bellevue ambulatory care center that will offer screenings, same-day procedures, diagnostics, and preventative care; 
• An H+H simulation training center that will allow CUNY students and others to simulate patient scenarios, utilizing mock operating rooms and labor and delivery rooms; 
• A DOE high school providing hands-on learning in health care and sciences to prepare students for careers in these growing sectors; and 
• A new Office of Chief Medical Examiner (OCME) Forensic Pathology Center, which employs 150 people and is a nationally leading training facility for forensic pathologists, with a 24/7, year-round operational schedule. 

SPARC Kips Bay will continue a legacy of successful public-private partnerships to help New York grow its life sciences industry. Over the next year, the city and NYCEDC, working alongside the state and CUNY, will lead a master planning process that will result in a conceptual site plan that will identify the site's infrastructure needs, building massing, open space and urban design, and potential zoning and other entitlement changes needed to implement the project. The planning process will be informed by community engagement and subject matter experts, and supported by the architectural, urban planning, and engineering firm Skidmore, Owings & Merrill.

This public-private partnership underscores Governor Hochul's commitment to spur growth and innovation in New York's healthcare and life sciences industries. The Governor continues to advance New York State's $620 million Life Science Initiative to fuel the creation of cutting-edge healthcare solutions and expand the state's ability to commercialize research. The initiative includes a $40 million New York State Biodefense Commercialization Fund created in response to the COVID-19 pandemic to capitalize on New York's research and development assets and expertise. 

Separately, Governor Hochul awarded the first grant from state's $350 million Long Island Investment Fund to the Feinstein Institutes for Medical Research and plans to launch a $50 million life sciences business plan competition through the Fund in the coming weeks. The Governor also worked with the State Legislature to secure a record $2.2 billion for capital improvements at CUNY and SUNY schools and an additional $500 million for operating expenses as part of this year's budget. And in August, the Governor launched a $1.3 billion Health Care and Mental Hygiene Worker bonus program to recruit and retain top talent for New York's healthcare sector.   

SPARC Kips Bay is expected to cost $1.6 billion and will be funded jointly by the city and state with additional private investment. SPARC Kips Bay is expected to break ground in 2026 and be completed by the end of 2031. 

NYC PLANNING AGENCY TO COMMUNITY BOARDS: IT’S TIME TO STATE PRIORITIES FOR CAPITAL BUDGET

The Department of City Planning encourages all New Yorkers to participate  as Oct. 31 deadline for budget requests approaches  

Department of City Planning (DCP) Director Dan Garodnick today asked New Yorkers to help shape the City budget process by bringing community needs and funding ideas to their Community Board this month. The New York City Charter requires each of the City’s 59 Community Boards to submit their District Needs Statements and Budget Requests by October 31, and each will hold a public hearing on their submission before it does. The submissions help to identify local funding and infrastructure priorities.  

 

“We are asking all New Yorkers to step up and let us know how we can best build up our communities,” said New York City Mayor Eric Adams. “Community input is a key consideration in any project our administration undertakes, and many of the best ideas often come directly from community members. We rely on those on the ground to help guide our work, and the community board district needs process will allow New Yorkers to shape our priorities and make sure the city’s comeback proceeds full speed ahead.” 

“This is an all-hands-on-deck moment for New Yorkers, and we want to ensure that every voice heard as we prepare next year’s budget. Tell us what you think your neighborhood needs most, whether it is a new school, park renovations, climate resiliency improvements, or anything else,” said Department of City Planning Director and Chair of the City Planning Commission Dan Garodnick. “We want to hear from you.”

With DCP’s support, Community Boards are working to ensure maximum community participation in their official part of the annual budget process. DCP will continue to engage with boards to help them guide the process and provide training and support. 

·        To find out more about the Community District Needs Process, you can visit our website

here. 

·        If you’d like to learn more about your Community Board, you can visit the DCP

Community District Profiles page and select “Community Board.”  

Community Board top rankings are used to identify local needs and citywide trends and inform the next City budget. In 2021, the most pressing issues identified through this process were: 

·        affordable housing 

·        parks and open space 

·        land use trends 

·        traffic 

The District Needs and Budget Requests process has been an essential part of building New York City’s budget since 1979, and has resulted in many projects throughout the city being funded in the budget.  Recent examples include the renovation of Pulaski Park in Bronx Community District 1, the reconstruction of the Greenpoint Library in Brooklyn Community District 1, and the installation of street lighting on Roosevelt Avenue in Queens Community District 4.

### 

 

Department of City Planning

The Department of City Planning (DCP) plans for the strategic growth and development of the City through ground-up planning with communities, the development of land use policies and zoning regulations applicable citywide, and its contribution to the preparation of the City’s 10-year Capital Strategy. DCP promotes housing production and affordability, fosters economic development and coordinated investments in infrastructure and services, and supports resilient, sustainable communities across the five boroughs for a more equitable New York City.

In addition, DCP supports the City Planning Commission in its annual review of approximately 450 land use applications for a variety of discretionary approvals. The Department also assists both government agencies and the public by advising on strategic and capital planning and providing policy analysis, technical assistance and data relating to housing, transportation, community facilities, demography, zoning, urban design, waterfront areas and public open space.

Attorney General James and DEC Commissioner Seggos Take Action to Stop Harmful Emissions from Norlite Facility

 

Lawsuit Against Norlite, LLC Alleges Emissions from Cohoes Facility Endanger Health and Wellbeing of Surrounding Community, Violate Multiple State Laws

New York Attorney General Letitia James and Department of Environmental Conservation (DEC) Commissioner Basil Seggos today filed a lawsuit against Norlite, LLC (Norlite) to force the company to stop polluting the air with contaminants from its Cohoes facility. Norlite, a Tradebe subsidiary, has a history of environmental violations and has previously been subject to multiple enforcement actions and penalties from DEC, including orders to cease and desist further violations. Recent air quality monitoring conducted by the state found the facility is emitting contaminants at levels that increase the risk to the health and wellbeing of the surrounding community. In the complaint filed today, the Office of the Attorney General (OAG) and DEC allege Norlite has failed to protect the health and safety of neighboring residents and mitigate air pollution-causing emissions.

“Pollution from the Norlite plant has put the health and welfare of those living in its shadow in danger,” said Attorney General James. “Despite this unrelenting harm, Norlite has consistently refused to take the appropriate measures necessary to control emissions and protect neighboring families. With today’s filing, Commissioner Seggos and I are taking action to protect the surrounding community by demanding an end to this flagrant noncompliance. Everyone should be able to open their windows and spend time outside without fear — we are committed to ending Norlite’s dangerous pollution and restoring safe, clean air to the neighborhoods that have suffered.”

“Norlite’s operations repeatedly demonstrate a willful disregard for New York state law and the health of the Cohoes community,” said DEC Commissioner Seggos. “DEC’s comprehensive data collection and scientific evidence of Norlite’s harmful off-site impacts, along with the facility’s ongoing noncompliance with required actions to protect local residents and the environment resulted in this major legal action, and I commend Attorney General James and DEC’s experts for working together to bring justice to this community.”

Norlite is an aggregate manufacturing and hazardous waste incineration facility located at 628 South Saratoga Street in the city of Cohoes, roughly 100 feet away from Saratoga Sites Apartments — a 70-unit public housing complex that as of May 2022 was home to approximately 150 residents. An estimated total of 660 people live within a half-mile of the facility; 32 percent are people of color.

Industrial operations at Norlite generate an estimated 56 tons of dust per year, which migrates into the surrounding community and pollutes the air, endangering residents’ health. This “fugitive dust” has been found to contain microscopic particles and crystalline silica, which when inhaled at elevated concentration can increase the risk for lung, heart, and nervous system diseases in sensitive individuals. Exposure to crystalline silica presents a public health concern as it is linked to Silicosis and lung cancer in industrial settings. 

DEC conducted an intensive monitoring program at the facility in 2021 and 2022, which determined that levels of particulate matter and crystalline silica in the air in the community surrounding Norlite exceed levels established to protect against harmful health impacts. The monitoring also confirmed Norlite to be the primary cause of the elevated levels of particulate matter and crystalline silica in the local community’s air. 

In addition to suffering harmful emissions, residents of Saratoga Sites Apartments have been forced to limit time outside, keep windows and doors closed, and invest in air conditioning units and fans due to the excessive “fugitive dust” from the facility.

The lawsuit includes numerous environmental violations issued by DEC for operations up to September 12, 2022. DEC’s enforcement actions include multiple consent orders and penalties against Norlite dating back to 1990, and New York state will continue to closely monitor the facility, collect additional data, and hold the facility accountable for any and all violations that occur during this legal process.

KRVC - Our Halloween Party is BACK! - Join us Monday, October 31, 3-7pm at KRVC

 

Join us for our Annual Halloween Party!

Look forward to seeing you!

KRVCDC.ORG

@krvcbronx

MAYOR ADAMS, DEPARTMENT OF SMALL BUSINESS SERVICES APPOINT DASHEEDA DAWSON AS CANNABIS NYC FOUNDING DIRECTOR

 

New York City Mayor Eric Adams and New York City Department of Small Business Services (SBS) Commissioner Kevin D. Kim announced the appointment of Dasheeda Dawson as the founding director of its new Cannabis NYC initiative to spearhead the agency’s support of the growing cannabis industry. Dawson will lead SBS’s strategy to support New York’s emerging cannabis industry through widespread public education, direct services to cannabis entrepreneurs and professionals, legislative advocacy, and policy development at all levels of government.

 

“Our administration is committed to planting the seeds for equity in a high-growth, budding industry like cannabis sales,” said Mayor Eric Adams. “The nation’s most equitable cannabis industry will be in New York City, and to drive that goal home, we have chosen a proven leader with unmatched experience and credibility in this field. Dasheeda Dawson will fill the needs of entrepreneurs in this space, and as a person with lived experience and who was harmed by the ‘War on Drugs,’ this is personal for her. I look forward to working with her, day after day, to ‘Get Stuff Done’ for New Yorkers and grow this initiative.”

 

“New York City is committed to building the country’s most equitable cannabis industry,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “By naming an experienced and accomplished industry leader like Dasheeda Dawson as founding director of Cannabis NYC, we are ensuring our economic and social equity goals will be fulfilled as this industry grows across the city.”

 

"Equity and social justice are the guiding principles of the Adams administration, and that’s why we are so excited to welcome Dasheeda Dawson as our founding director of Cannabis NYC,” said SBS Commissioner Kevin D. Kim. “Her professional experience as an educator, regulator, entrepreneur, and advocate make her ready for this moment. Her personal experience — as someone who has been impacted directly by the ‘War on Drugs’ — also uniquely prepare her to lead this groundbreaking initiative. I am confident that with Dasheeda at the helm of Cannabis NYC, we will help countless New Yorkers better understand and fully take advantage of this newfound opportunity.”

 

“Leading Cannabis NYC is an incredible full circle moment. Growing up in East New York, I survived the height of cannabis prohibition and witnessed targeted enforcement derail the lives of my friends and family. I was stopped, searched, and treated like a criminal before I ever touched the plant, which shaped my initial perceptions,” says Dasheeda Dawson, founding director, Cannabis NYC. “Now, as a cannabis patient, educator, and regulator, I get to support other consumers, small businesses, and local stakeholders in the growing industry so that cannabis — once used to suppress communities like mine — can be tapped as a tool for transformation. I’m thrilled to be back home, helping to craft an equity-centered approach to the city’s cannabis industry framework that welcomes all New Yorkers to the table.”

 

Dawson will serve as the primary liaison between SBS, other city agencies, the New York State Office of Cannabis Management (NYSOCM), as well as community stakeholders, including elected officials, community boards, and industry associations. She will also work to establish and collaborate with the New York City Cannabis Advisory Council, an advisory board of industry and community stakeholders that aims to ensure innovation and equity are central to the success of this emerging industry.

 

“Dasheeda understands what it means to run a city cannabis program that centers equity and community reinvestment,'' says Chris Alexander, executive director, NYSOCM. “Her historic work in Portland investing in entrepreneurs and tirelessly advocating in her home state of New York define her as a national leader in the cannabis space. She has continued to destigmatize cannabis use while promoting its benefits, and I’m confident that she’ll continue to be a powerful ally as we work together to make New York’s cannabis market the most accessible and diverse in the nation.”

 

About Dasheeda Dawson -- Founding Director of Cannabis NYC

 

Dasheeda Dawson is a global cannabis advocate, award-winning Fortune 100 business strategist, and a bestselling author on the cannabis industry. Her advocacy and thought leadership have also been featured across multiple outlets.

 

Dawson has nearly 20 years of business development, strategic management, and brand marketing excellence while leading transformative organizations in both the public and private sectors, nearly a decade of which has focused on the growing cannabis industry.

 

As an advocate and policy advisor, Dawson was pivotal to the 2021 landmark passage of New York’s Marijuana Regulation and Taxation Act. While fighting for legalization in her home state, Dawson was tapped to lead cannabis regulation in Portland, Oregon. As cannabis program manager for the City of Portland, Dawson oversaw all regulatory licensing, compliance, education, and equity initiatives for the city’s cannabis industry. Supported by ongoing cannabis tax revenue allocation, her office managed the Social Equity & Educational Development (SEED) Initiatives, which includes the nationally-modeled SEED Grant Fund, the country’s first community reinvestment fund tied to local cannabis tax revenue. Under her leadership, Portland approved a multimillion-dollar Cannabis Emergency Relief Fund, becoming the first government jurisdiction in the country to allocate cannabis tax revenue to provide aid and emergency relief to the industry.

 

Dawson serves as Board chair of the Cannabis Regulators of Color Coalition, a national organization of industry policymakers and regulators often referred to as the leading architects of cannabis equity and reform in the United States.

 

Dawson received her MBA from Rutgers Business School and completed her undergraduate degree in molecular biology at Princeton University.

 

As Open Enrollment Begins Oct. 15, NYSOFA Encourages Older Adults to Utilize Free Statewide Medicare Counseling Program

 

The NYSOFA-administered Health Insurance Information, Counseling and Assistance Program (HIICAP) served 248,000 New Yorkers in 2021, helping individuals make informed decisions

Medicare open enrollment begins October 15 and runs through December 7. It's the time when beneficiaries can make changes in their health plan or prescription drug coverage and other options that take effect January 1.

Free and objective counseling is available to help beneficiaries navigate their options. The New York State Office for the Aging (NYSOFA) encourages older New Yorkers to utilize this assistance. It is available through the NYSOFA-administered Health Insurance Information, Counseling and Assistance Program (HIICAP), which helped 248,000 New Yorkers in 2021. To reach a local counselor, call the helpline at 800-701-0501.  

NYSOFA Director Greg Olsen said: "Your insurance coverage changes from year to year. So do your individual needs as a Medicare beneficiary, such as newly prescribed prescription drugs, having different physicians who may not be in a plan’s network, or changes in your financial status that might make you eligible for assistance to cover out-of-pocket costs. HIICAP counselors are a trusted resource to review your current needs and help you make informed decisions, especially at this critical time during open enrollment. Every beneficiary should take this opportunity to fine-tune their needs."

Upcoming Facebook Livestream to Answer Your Questions

On October 27 at 1 p.m., NYSOFA will be featuring a livestream on Facebook covering "Medicare Open Enrollment: What You Need to Know." The program is part of a monthly series where NYSOFA Director Greg Olsen features guest experts on topics of interest to older adults.

NYSOFA’s guests on October 27 include Heather Leddick, who is the primary administrator for HIICAP in New York State. She'll discuss the HIICAP program, what it offers, and how to get assistance. The livestream will also include Frederic Riccardi, President of the Medicare Rights Center. He’ll explain the 2023 changes in Medicare, including expansion of Medicaid and the Medicare Savings Program (MSP), among other updates.

RSVP for the program here or head to NYSOFA's Facebook page at https://www.facebook.com/NYSAGING on October 27 at 1 p.m. to watch the program and ask questions of the experts in the livestream chat.

Heather Leddick, administrator for HIICAP in New York, said: “With over 500 trained HIICAP counselors throughout the state, Medicare beneficiaries, their families, and caregivers have access to a trusted known community resource. We encourage beneficiaries to contact 1-800-701-0501 to schedule a one-on-one counseling appointment at any time throughout the open enrollment period and throughout the year. This free, unbiased service provides education and information to help you make informed decisions about your personal health care needs.”

Frederic Riccardi, President of the Medicare Rights Center, said: “As people with Medicare weigh their coverage choices for the upcoming year, health care costs are an important consideration. Starting in 2023, people who live in New York and have a limited income may be newly eligible to receive assistance with their health care costs through a Medicare Savings Program (MSP). On January 1, eligibility for this vital program will expand for New Yorkers, and if someone is currently enrolled in an MSP, they may receive more comprehensive benefits.” 

HIICAP in Detail

During open enrollment, or at any time of the year, HIICAP can help you:

• Understand the Medicare prescription drug benefit (Medicare Part D) and how to select the best plan.

• Understand low-income subsidy programs, including Extra Help and Medicare Savings Programs (MSPs).

• Find ways to pay for your medications or medical equipment.

• Understand and apply for the Elderly Pharmaceutical Insurance Coverage (EPIC) program.

• Choose between original Medicare and Medicare Advantage plans.

• Understand Medicare rules and your medical bills.

• Report possible Medicare fraud or abuse.

• Provide information on how to appeal a decision by Medicare, your managed care provider or other health insurance company.

• Discover ways to fill in Medicare’s gaps.

• Learn how to file a Medicare or Medigap complaint.

• Learn about Medicare-covered prevention and screenings.

Protecting Yourself

Medicare experts report a higher risk of potential fraud during the open-enrollment period as well as potentially misleading marketing. Medicare has rules about how plans can and cannot communicate with you to market their insurance products. The Medicare Rights Center offers the following warnings:

• Plans are allowed to mail or e-mail you but are not allowed to call or visit you in person without your permission.

• Beware of people who pressure about making plan changes, claim to be representing Medicare, or attempt to alarm you about losing benefits unless you enroll in a particular plan.

• Beneficiaries who believe they are a victim of fraud or identity theft should contact Medicare. More information is available at Help fight Medicare fraud.

NYSOFA and Medicare also remind older adults to treat their Medicare number as they do their Social Security number and credit card information. People with Medicare should never give their personal information to anyone arriving at their home uninvited or making unsolicited phone calls selling Medicare-related products or services. If someone calls and asks for a recipient’s Medicare number or other personal information, hang up and call 1-800-MEDICARE (1-800-633-4227).

Attorney General James Secures $1.9 Million from E-Commerce SHEIN and ROMWE Owner Zoetop for Failing to Protect Consumers’ Data

 

Zoetop Failed to Notify All 39 Million SHEIN Shoppers of a Data Breach and Downplayed the Scope of the Breach to Consumers

More than 800,000 New Yorkers Were Impacted by SHEIN and ROMWE Data Breach

New York Attorney General Letitia James secured $1.9 million from e-commerce retailer, Zoetop Business Company, Ltd. (Zoetop), for failing to properly handle a data breach that compromised the personal information of tens of millions of consumers worldwide and for lying about the scope of the breach to consumers. Zoetop, which owns and operates the popular e-commerce brands SHEIN and ROMWE, had a data breach in which 39 million SHEIN accounts and 7 million ROMWE accounts were stolen, including accounts for more than 800,000 New York residents. SHEIN and ROMWE are popular shopping sites frequently used by millennials and Gen Zers. An investigation by the Office of the Attorney General (OAG) revealed that the company failed to properly safeguard consumers’ information prior to the data breach, failed to take adequate steps to protect many of the impacted accounts after the breach, and downplayed the extent of the cyberattack to consumers. As a result of today’s agreement, Zoetop must pay $1.9 million in penalties to the state and strengthen its cybersecurity measures to protect consumers’ information.

“SHEIN and ROMWE’s weak digital security measures made it easy for hackers to shoplift consumers’ personal data,” said Attorney General James. “While New Yorkers were shopping for the latest trends on SHEIN and ROMWE, their personal data was stolen and Zoetop tried to cover it up. Failing to protect consumers’ personal data and lying about it is not trendy. SHEIN and ROMWE must button up their cybersecurity measures to protect consumers from fraud and identity theft. This agreement should send a clear warning to companies that they must strengthen their digital security measures and be transparent with consumers, anything less will not be tolerated.”

In June 2018, Zoetop was targeted in a cyberattack. Attackers stole credit card information and personal information, including names, email addresses, and hashed account passwords of certain Zoetop customers, including SHEIN shoppers. Zoetop did not detect the intrusion and was later notified by its payment processor that its systems appeared to have been compromised. The payment processor reported that it had been contacted by a large credit card network and a credit card issuing bank, each of which had information “indicating that [Zoetop’s] system[s] have been infiltrated and card data stolen.” 

Following the cyberattack, Zoetop engaged a cybersecurity firm to conduct a forensic investigation. The cybersecurity firm confirmed that attackers had gained access to Zoetop’s internal network and had altered code responsible for processing customer transactions in an attempt to intercept and exfiltrate customer’s credit card information. The cybersecurity firm also found that the attackers had exfiltrated the personal information of SHEIN customers, including names, email addresses, and hashed account passwords. Worldwide, 39 million SHEIN account credentials were stolen, including the credentials of more than 375,000 New York residents.

The OAG investigation found that Zoetop contacted only a fraction of the 39 million SHEIN accounts whose login credentials had been compromised and did not reset passwords or otherwise protect any of the exposed accounts. For the vast majority of SHEIN accounts impacted in the breach — more than 32.5 million accounts worldwide and 255,294 New York residents — Zoetop failed to even alert those customers that their login credentials had been stolen.  

In addition, Zoetop’s public statements about the data breach included several misrepresentations about the breach’s size and scope. For example, Zoetop falsely stated that only 6.42 million consumers had been impacted in the breach and that the company was in the process of notifying all of the impacted customers. Zoetop also represented, falsely, that it “ha[d] seen no evidence that [customer] credit card information was taken from our systems.”    

Two years later, Zoetop discovered customer login credentials for ROMWE customer accounts available on the dark web. Based on the results of a forensic investigation, Zoetop concluded that the ROMWE login credentials had likely been exfiltrated in 2018 in the same attack that had impacted SHEIN accounts. Zoetop reset the passwords of affected accounts and notified affected ROMWE consumers. In all, the login credentials of over 7 million ROMWE accounts were stolen, of which nearly 500,000 belonged to New York residents.

The OAG found that, at the time of the 2018 data breach, Zoetop failed to maintain reasonable security measures to protect customers’ data in several areas:

•   Password Management: Until August 2018, Zoetop hashed customer passwords using an algorithm that was known at the time to be insufficient to protect against attacks.
•   Protection of Sensitive Customer Information: Zoetop misconfigured its systems to store credit card information from certain transactions in a debug log file in plain text, which is less secure and easier for hackers to access. In addition, at the time of the breach, Zoetop failed to perform scans to identify where on its systems cardholder data was stored. 
•   Monitoring: Zoetop did not run regular external vulnerability scans or regularly monitor or review audit logs to identify security incidents.
•   Incident Response: Zoetop did not have a comprehensive, written incident response plan in place to address a cyberattack. In addition, following the 2018 data breach, Zoetop failed to take timely action to protect many of the impacted customers.

As a result of today’s agreement, Zoetop is required to pay New York $1,900,000 in penalties and costs. In addition, Zoetop must maintain a comprehensive information security program that includes robust hashing of customer passwords, network monitoring for suspicious activity, network vulnerability scanning, and incident response policies requiring timely investigation, timely consumer notice, and prompt password resets. 

You're Invited: Street Co-naming Ceremony for George Rodriguez

 

You are cordially invited to join us as we honor and pay tribute to the life of George Rodriguez. See flyer below for more details.