Monday, May 16, 2022

MAYOR ADAMS TAKES STEPS TO TRANSFORM NEW YORK CITY INTO GLOBAL HUB FOR DIGITAL GAMES INDUSTRY

 

Announces CUNY’s First-Ever Game Design Bachelor’s Degree With $2 Million Investment

 

Introduces NYC’s First-Ever Game Development Industry Council


  New York City Mayor Eric Adams today took steps to transform the city into a global hub for the digital games industry by announcing that the City University of New York (CUNY) is creating and funding a Bachelor’s Degree program in Digital Game Design at City College of New York (CCNY). The creation of the gaming design degree is expected to drive inclusive growth by providing college students a public and affordable option for careers in the rapidly growing digital games industry and related fields. The Mayor’s Office of Media and Entertainment (MOME) has partnered with City College to offer the first-ever degree. Making New York City a leading hub for digital game development was a vital piece of Mayor Adams’s “Rebuild, Renew, Reinvent: A Blueprint for New York City’s Economic Recovery,” announced in March.

 

Mayor Adams — joined by Deputy Mayor for Economic and Workforce Development Maria Torres-Springer, MOME, and members of New York City’s digital games community — also today introduced the first-ever Game Development Industry Council, created to advise the city’s policies and programs in the games development sector.

 

“New York City has always been the center of innovation, but it is time that New York City level up and finally became a leader in the digital gaming space,” said Mayor Adams. “It’s time to take advantage of all the talent we have here in New York by investing in the future of gaming. This $2 million investment will help us reach more than 1,000 students over the next three years and diversify the gaming field. This is how we get stuff done for our young people and for New York City!”

 

“With these announcements today, this administration affirms its commitment to New York City’s digital games industry, a sector that plays a major role in our city’s economy, supporting 7,600 jobs, $762 million in wages, and $2 billion in economic output,” said Deputy Mayor of Economic and Workforce Development Maria Torres-Springer. “Our new industry council will inform future economic development and inclusion efforts, while our partnership with CUNY will provide New York City students a strategic pathway to careers in these fields. This is a milestone moment in this city’s mission to drive inclusive growth and write the next chapter for New York City’s tech sector.”

 

“The creation of the city’s first-ever Bachelor’s Degree program in game design, coupled with a pipeline to career and workforce development, is a holistic approach to equip New Yorkers with the necessary tools to join and transform the gaming industry,” said Deputy Mayor of Strategic Initiatives Sheena Wright. “I am thrilled for today’s announcement and for the cross-sector partnership that taps into New York City’s innovators, entrepreneurs, and creative minds by providing a space for them to succeed.”


“We are proud to announce the CUNY Game Design Bachelor Program at City College and the city’s first-ever digital games industry council as part of the ‘Blueprint for New York City’s Economic Recovery,’” said MOME Commissioner Anne del Castillo. “By cultivating local talent at City College and working with industry leaders to identify growth opportunities in this sector, we are making strides to establish New York City as a hub for digital games development that builds on the strength of our city’s creativity, education, and technology.”


“We’re grateful that the Mayor’s Office for Media and Entertainment is supporting the development of a digital games program at CCNY,” said City College President Vincent Boudreau. “Young people in our communities, growing up in an environment where gaming and digital consumer skills are ubiquitous, are exquisitely prepared to make gaming a pathway to solid careers for themselves and supporting economic development for the city. Moving from gaming competition to technology-driven aspects of design and game development, this program should introduce whole communities of young people to one of our most dynamic economic sectors. We’re grateful, too, to have built this program in collaboration with partners like Urban Arts, Hostos Community College, and the Harlem Gallery of Science.”

 

Mayor Adams was joined at CUNY’s City College campus by NYXL’s NY Excelsior Team, winners of two season conference titles in the Overwatch League. The team named Mayor Adams an honorary member in celebration of NYXL’s recent announcement of their Young Creator’s Program. The Young Creator’s Program provides 10 $50,000 fellowships to the next generation of integrated content developers. Applications for the NYXL Project can be found online.

 

Today’s two announcements come as the digital games industry was projected to reach upwards of $180 billion in global sales in 2021. The first-ever New York City Digital Games Industry Economic Impact Report, released in 2021, underscored the digital game industry’s significance and contribution, specifically to New York City’s economy — supporting 7,600 jobs, $762 million in wages, and $2 billion in economic output.

 

In total, MOME will be making a $2 million investment in CUNY’s Career Pathways program, which includes funding towards the digital game design Bachelor’s Degree, designed to reach over 1,000 students over the next three years and aimed at increasing diversity and equity in the digital gaming field. This holistic program creates a pathway from high school to the digital gaming industry through a collaboration with Urban Arts — using their rigorous curricula and evidence-based pedagogical approach — as well as the Harlem Gallery of Science. This new funding will expand outreach to new high school youth from Title I schools for post-secondary programs and careers in game design and other tech fields.

 

Additionally, the program’s industry partnerships will cultivate young talent among CCNY students and develop the skills and experiences sought by the industry — through internships, mentorships, college events, and eSports sponsorships. CUNY’s Career Pathways program will also guide transitions for students in the Hostos Community College Associates Degree Digital Games Program to a four-year Bachelor’s Degree program in digital game design and creative arts at CCNY by 2024.

 

Interested students may begin the process towards a degree in digital games by applying to the Hostos Digital Game Design Program online.

 

Members of the Game Development Industry Council will advise the city’s production policies and programs in the digital games sector and is made up of various leaders of New York City’s digital games sector:

 

“The city’s investment in CUNY's Career Pathways Program is an important step in making New York City a new mecca for the digital games industry, as education and professional development are key stepping stones to ensuring long-term careers within this thriving, multibillion-dollar sector,” said Asi Burak, chief business officer, Tilting Point; chairman, Games for Change; and member, Digital Games Industry Council. “It is also great to see the formation of the Digital Games Industry Council, which I enthusiastically agreed to join, as we continue to support and grow the games industry in New York City!”


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Governor Hochul Updates New Yorkers on Efforts to Address the Opioid Epidemic

 A counseling group

FY 2023 Enacted Budget Provides Historic Funding for Prevention, Treatment and Recovery Services  

Opioid Settlement Advisory Board Members Appointed and Scheduled to Meet  


 Governor Kathy Hochul today updated New Yorkers regarding ongoing efforts to address the opioid epidemic. In response to the newly released information from the U.S. Centers for Disease Control and Prevention indicating that more than 107,000 Americans died of overdoses last year, the Governor is reinforcing ongoing investments and her continued commitment to addressing this critical issue.      

“The figures released by the CDC are staggering, showing precious lives continue to be taken by the opioid epidemic, devastating families and communities across New York State and beyond,” Governor Hochul said. “Make no mistake: my Administration will fight every day to provide New Yorkers with further access to life-saving resources, services, and care. We will do everything we can to empower New Yorkers with the information they need to protect themselves and their loved ones from this public health crisis.”   

One of the Governor’s first actions upon taking office was appointing a new Commissioner of the Office of Addiction Services and Supports (OASAS). Since her appointment, Dr. Chinazo Cunningham, a physician and expert in treating substance use disorder, has been working to expand and enhance the State’s addiction services system.      

Commissioner of the Office of Addiction Services and Supports Dr. Chinazo Cunningham said, “I am proud to have been appointed by Governor Hochul to help implement an agenda of ensuring a comprehensive system of prevention, treatment, recovery, and harm reduction in New York State. Ensuring equitable access to these critical services is essential to helping us save more lives and support more families.”    

OASAS oversees one of the nation’s largest Substance Use Disorder systems of care with approximately 1,700 prevention, treatment, harm reduction and recovery programs serving over 680,000 individuals per year. OASAS is the state agency designated to provide the coordination of state-federal relations in the area of addiction services; is the State Opioid Treatment Authority; and the agency charged with the responsibility to monitor the use of the opioid settlement funds and ensure that the funds appropriated in the budget are expended for their designated purpose.  

Commissioner Dr. Mary T. Bassett and the State’s Department of Health continue to advance a variety of harm reduction initiatives to reduce the burden of opioid abuse and dependency statewide. This includes robust data collection and reporting as well as supporting the work of partners in all corners of the State to build on the community basis for compassionate care. 

State Health Commissioner Dr. Mary T. Bassett said, “The Department continues the critical work of providing and expanding access to evidence-based treatment and care for New Yorkers struggling with substance use. Under Governor Hochul’s leadership, increased funding and the establishment of a diverse, experienced Advisory Board will enable us to further these efforts and help save lives.” 

To provide OASAS and the State Department of Health the support they need to carry out this important work, the Governor’s first State Budget included historic investments to support the workforce and provider system and ensure equitable access to life-saving services across the State. Specifically, this year’s Budget is helping to expand access to medication through mobile methadone services, which includes adding vehicles and telehealth equipment, and developing harm-reduction services and evidence-based community interventions to engage more individuals in services.   

The FY 2023 Enacted Budget invests $184.5 million of Opioid Settlement Funds in initiatives to address the opioid epidemic. These initiatives expand access to treatment services across the State by expanding system capacity and improving pathways for individuals to enter treatment. The Budget would also make critical investments in harm reduction, community-based prevention, and recovery programs. 

In addition, the Budget invests $200 million over five years from the Opioid Stewardship Fund, to fight the opioid epidemic using a public health approach. This inter-agency effort will be coordinated by OASAS and DOH and focus on harm reduction programs designed to serve individuals at highest risk of overdose, as well as initiatives to help uninsured New Yorkers afford the cost of opioid treatment.  

Commissioner Cunningham, under the Governor’s leadership, has also significantly ramped up efforts to make federal funding awards available to the provider system.  To date, over $78 million in federal Supplemental SAPT Block Grant funds have been made available to support efforts such as strengthening the addiction workforce, stabilizing the provider system, developing a prevention infrastructure, expanding access to medication for opioid use disorder services, enhancing recovery programming, creating transitional housing units, and promoting regional collaborations to provide more comprehensive, patient-centered care.    

The State is also in the second year of the second round of State Opioid Response Grants.  A total of $56 million has been made available to expand evidence-based prevention services in high-need communities; provide street outreach services to engage those not currently in treatment; support Health Hubs to provide access to an array of primary and behavioral health services; develop public awareness campaigns; and fund Recovery Community Outreach Centers to support individuals in their efforts to live a healthy lifestyle.  

To reduce the burden of opioid use and dependency statewide, the Department of Health collects and publishes county-level data to identify and respond to local needs, including through its quarterly reporting. The Department of Health also supports numerous partners and organizations that are providing quality treatment, training, and care. This includes New York MATTERS, an electronic referral system for connecting persons with opioid use disorder to local treatment and harm reduction services, the Local Health Department Initiative, which provides funding for 24 county health departments with the highest overdose rates outside of New York City, and over 900 registered Opioid Overdose Prevention Programs, which host training for non-medical individuals to recognize opioid overdoses and respond appropriately by calling 911 and administering naloxone, provided at no-cost. Through the Department’s Naloxone Co-payment Assistance Program (N-CAP), participants with prescription drug coverage have co-payments of up to $40 covered as part of their health insurance, resulting in no or lower out-of-pocket expenses. On the forefront of innovation in addressing the needs of New Yorkers who use drugs and lead in the distribution of naloxone to New Yorkers vulnerable to overdose, the State has worked to establish 25 Syringe Exchange Programs (SEPs) with over 81 sites statewide. These centers focus on reducing overdose by providing easy access to buprenorphine, building safety plans, and equipping participants with naloxone. 

The Governor’s latest efforts aimed at addressing the opioid epidemic include announcing that the Opioid Settlement Advisory Board has been constituted and the members have been selected. The first meetings of the Advisory Board have been scheduled for June 14 and 28 in Albany. The Advisory Board will soon meet to provide recommendations related to how the Opioid Settlement Funds should be allocated. These meetings will be available to the public in accordance with Public Meetings Law. The 21-member Advisory Board includes representation from OASAS, the Office of Mental Health, the State Department of Health, the Division of Budget, and 17 community members. The named community members include:  

Lawrence S. Brown, MD      
Anne Constantino      
Stephen Giordano, PhD   
Avi Israel  
Suzanne G. Lavigne            
Ashley Livingston      
Joshua J. Lynch  
Stephanie Marquesano  
Cheryll Moore  
Debra Pantin  
Carmen Rivera  
Joyce Rivera   
Tisha M. Smith, EdD            
Dr. Ashwin Vasan      
Justine Waldman, MD          
Kevin Watkins           

An additional appointment is pending and will be announced in the near future.  

New Yorkers struggling with an addiction, or whose loved ones are struggling, can find help and hope by calling the state’s toll-free, 24-hour, 7-day-a-week HOPEline at 1-877-8-HOPENY (1-877-846-7369) or by texting HOPENY (Short Code 467369).   

Available addiction treatment including crisis/detox, inpatient, residential, or outpatient care can be found using the NYS OASAS Treatment Availability Dashboard at FindAddictionTreatment.ny.gov or through the NYS OASAS website.     

New Yorkers can learn more about the State Department of Health’s latest efforts to combat the opioid effort and review county-level data at the page here. People with questions or requests for additional information should contact opioidprevention@health.ny.gov.   

If you, or a loved one, have experienced insurance obstacles related to treatment or need help filing an appeal for a denied claim, contact the CHAMP helpline by phone at 888-614-5400 or email at ombuds@oasas.ny.gov.  

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Hacker and Ransomware Designer Charged for Use and Sale of Ransomware, and Profit Sharing Arrangements with Cybercriminals

 

Defendant, a Doctor, Designed Software With “Doomsday Counter,” Shared in Profits from Ransomware Attacks, and Bragged about Use by Iranian State-Sponsored Hacking Group

A criminal complaint was unsealed today in federal court in Brooklyn, New York, charging Moises Luis Zagala Gonzalez (Zagala), also known as “Nosophoros,” “Aesculapius” and “Nebuchadnezzar,” a citizen of France and Venezuela who resides in Venezuela, with attempted computer intrusions and conspiracy to commit computer intrusions.  The charges stem from Zagala’s use and sale of ransomware, as well as his extensive support of, and profit sharing arrangements with, the cybercriminals who used his ransomware programs.  

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged, the multi-tasking doctor treated patients, created and named his cyber tool after death, profited from a global ransomware ecosystem in which he sold the tools for conducting ransomware attacks, trained the attackers about how to extort victims, and then boasted about successful attacks, including by malicious actors associated with the government of Iran,” stated United States Attorney Peace.  “Combating ransomware is a top priority of the Department of Justice and of this Office.  If you profit from ransomware, we will find you and disrupt your malicious operations.”

"We allege Zagala not only created and sold ransomware products to hackers, but also trained them in their use. Our actions today will prevent Zagala from further victimizing users. However, many other malicious criminals are searching for businesses and organizations that haven't taken steps to protect their systems - which is an incredibly vital step in stopping the next ransomware attack," stated Assistant Director-in-Charge Driscoll.

As charged in the criminal complaint, Zagala, a 55-year-old cardiologist who resides in Ciudad Bolivar, Venezuela, has designed multiple ransomware tools—malicious software that cybercriminals use to extort money from companies, nonprofits and other institutions, by encrypting those files and then demanding a ransom for the decryption keys.  Zagala sold or rented out his software to hackers who used it to attack computer networks. 

One of Zagala’s early products, a ransomware tool called “Jigsaw v. 2,” had, in Zagala’s description, a “Doomsday” counter that kept track of how many times the user had attempted to eradicate the ransomware.  Zagala wrote: “If the user kills the ransomware too many times, then its clear he won’t pay so better erase the whole hard drive.”

Beginning in late 2019, Zagala began advertising a new tool online—a “Private Ransomware Builder” he called “Thanos.”  The name of the software appears to be a reference to a fictional cartoon villain named Thanos, who is responsible for destroying half of all life in the universe, as well as a reference to the figure “Thanatos” from Greek mythology, who is associated with death.  The Thanos software allowed its users to create their own unique ransomware software, which they could then use or rent for use by other cybercriminals.  The user interface for the Thanos software is shown below:[1]

Screenshot of Zagala's program

The screenshot shows, on the right-hand side, an area for “Recovery Information,” in which the user can create a customized ransom note.  Other options include a “data stealer” that specifies the types of files that the ransomware program should steal from the victim computer, an “anti-VM” option to defeat the testing enviornments used by security researchers, and an option, as advertised, to make the ransomware program “self-delete.” 

Rather than simply sell the Thanos software, Zagala allowed individuals to pay for it in two ways.  First, a criminal could buy a “license” to use the software for a certain period of time.  The Thanos software was designed to make periodic contact with a server in Charlotte, North Carolina that Zagala controlled for the purpose of confirming that the user had an active license.[2]  Alternatively, a Thanos customer could join what Zagala called an “affiliate program,” in which he provided a user access to the Thanos builder in exchange for a share of the profits from Ransomware attacks.  Zagala received payment both in fiat currency and cryptocurrency, including Monero and Bitcoin.

Zagala advertised the Thanos software on various online forums frequented by cybercriminals, using screennames that referred to Greek mythology.  His two preferred nicknames were “Aesculapius,” referring to the ancient Greek god of medicine, and “Nosophoros,” meaning “disease-bearing” in Greek.  In public advertisements for the program, Zagala bragged that ransomware made using Thanos was nearly undetectable by antivirus programs, and that “once encryption is done,” the ransomware would “delete itself,” making detection and recovery “almost impossible” for the victim. 

In private chats with customers, Zagala explained to them how to deploy his ransomware products—how to design a ransom note, steal passwords from victim computers, and set a Bitcoin address for ransom payments.  As Zagala explained to one customer, discussing Jigsaw: “Victim 1 pays at the given btc [Bitcoin] address and decrypts his files.”  Zagala also noted that “there is a punishment… [i]f user reboots.  For every rerun it will punish you with 1000 files deleted.”  After Zagala explained all the features of the software, the customer replied: “Sir, I really need to say this . . . You are the best developer ever.”  Zagala responded: “Thank you that is nice to hear[.]  Im very flattered and proud.”  Zagala had only one request: “If you have time and its not too much trouble to you please describe your experience with me” in an online review.

On or about May 1, 2020, a confidential human source of the FBI (CHS-1) discussed joining Zagala’s “affiliate program.”  Zagala responded: “Not for now.  Don’t have spots.”  But Zagala offered to license the software to CHS-1 for $500 a month with “basic options,” or $800 with “full options.” 

On or about October 7, 2020, CHS-1 asked Zagala how to establish an affiliate program of his own using Thanos.  Zagala responded with a short tutorial on how to set up a ransomware crew.  He explained that CHS-1 should find people “versed…in LAN hacking” and supply them with a version of the Thanos ransomware that was programmed to expire after a given period of time.[3]  Zagala said that he personally had “a maximum of between 10-20” affiliates at a given time, and “sometimes only 5.”  He added that hackers approached him for his software after they had gained access to a victim network:  “they come with access to [b]ig LAN, I check and then I accept[.]  they lock several big networks and we wait…If you lock networks without tape or cloud (backups)[,] almost all pay[.]” 

Zagala further explained that, sometimes, a victim network turned out to have an unexpected backup: “so no point in locking because they have backups, so in that case we only exfiltrate data,” referring to stealing victim information.  Zagala further added that he had an associate who “knows how to corrupt tapes,” meaning backups, and how to “disable[] AV,” meaning antivirus software.  Finally, Zagala offered to give CHS-1 an additional two weeks free after CHS-1’s one-month license expired, explaining “because 1 month is too little for this business…sometimes you need to work a lot to get good profit.”

Zagala’s customers favorably reviewed his products.  One individual posted a message praising Thanos in July 2020, writing “i bought the ransomware from nosophoros and it is very powerful,” and claiming that he had used Zagala’s ransomware to infect a network of approximately 3000 computers.  And, in December 2020, another user wrote a post in Russian: “We have been working with this product for over a month now, we have a good profit!  Best support I’ve met.”  Zagala has publicly discussed his knowledge that his clients used his software to commit ransomware attacks, including by linking to a news story about an Iranian state-sponsored hacking group’s use of Thanos to attack Israeli companies.

In or around November 2021, Zagala began using a third screenname – “Nebuchadnezzar.”  In chats with a second confidential source of the FBI (CHS-2), Zagala stated that he had switched aliases to preserve “OPSEC… operational security” because “malware analysts are all over me.” 

On or about May 3, 2022, law enforcement agents conducted a voluntary interview of a relative of Zagala who resides in Florida and whose PayPal account was used by Zagala to receive illicit proceeds.  The individual confirmed that Zagala resides in Venezuela and had taught himself computer programming.  The individual also showed agents contact information for Zagala in his phone that matched the registered email for malicious infrastructure associated with the Thanos malware.

If convicted, the defendant faces up to five years’ imprisonment for attempted computer intrusion, and five years’ imprisonment for conspiracy to commit computer intrusions. 

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