Advice for Avoiding a Ransomware Attack
May 26, 2021
Advice for Avoiding a Ransomware Attack

Advice for Avoiding a Ransomware Attack


Earlier this month the country once again bore the consequences of a cyber security breach when Russian hackers, calling themselves DarkSide, coordinated an attack on the computer network of the Colonial Pipeline Co., a major gas pipeline that provides almost half of the gas supply to the East Coast of our country. The Colonial Pipeline Co. paid out a hefty ransom of $4.4 million to get control of their business network back from hackers who had taken over. The decision to pay the ransom did not come lightly and was not agreed upon by some experts, such as the FBI who maintain a policy of not paying ransom to terrorists, but the CEO felt obliged to get the gas supply up and running again for the millions of Americans who were being affected by the shortage of gas and millions more who would pay the price as supply could not keep up with demand.


Targeted attacks are no accident, there is a process that hackers follow that is somewhat predictable, but with awareness and security measures firmly in place are also preventable. Good security protocols that are followed and backed up by continuous monitoring of security are the only hope to prevent this from happening to you. Even with vigilant practices an organization weakest point is usually a human error, so training is imperative to prevention.


How ransomware works

The first step of a ransomware attack is reconnaissance. These bad actors research their targets in advance to determine the likelihood of ransom payment and they identify vulnerabilities and access points. Your business should stay vigilant in security measures and have access points monitored and checked regularly for flaws. Once access points are identified, the hackers use their skills exploiting these by obtaining credentials through phishing, using default passwords, or purchasing access to systems through the dark web. The best way to prevent this is to use secure passwords, double authentication, and train employees on staying vigilant against phishing. It’s also a good idea to have any terminated employees’ access completely cut off as early as possible in the separation process.


Once a hacker gains access to your network, the name of the game is to maintain an open door.  They do this by using malware to create back doors into the system that ensure maintained entry into your network. The next step is to encrypt or destroy your back ups and move through your network looking for additional systems and back-ups to control, encrypt or destroy. Once in control of your network these threat actors steal your data and use this as leverage to force the organization to pay a ransom by threatening to disclose the stolen data publicly and/or they encrypt as many files and systems as possible across the network to refuse you the ability to utilize your network.


Once your data and network are firmly in their handcuffs, a ransom will be requested to release the encrypted files and allow you access. If the victim organization chooses to pay the ransom, usually an experienced incident response firm is engaged to assist with the negotiation of the demand and facilitate the cryptocurrency payment. If the ransom is paid, a decryption key is provided by the hackers and data recovery can occur. If the ransom is not paid the organization must either recover the files from a clean back up or rebuild the files and system from scratch which could take several weeks or months to recover.  


What you can do to avoid ransomware attacks

The dark web is upon us and there are dark forces that work around the clock looking for large payouts and easy targets. Don’t be an easy target! Utilize your IT Security protocols vigilantly, consider a threat assessment by an expert and consider purchasing Cyber Security Insurance for breach response assistance. There are several products available to fit a variety of sizes and types of businesses that protect your business assets in the event of a breach of personally identifiable information, a hostile takeover of your network, interruption of your cloud or the introduction of malware to your system.


Talk to our licensed agent today about products available to protect your organization. In the underwriting process you may find additional tips on security measures that you hadn’t considered before and you can rely on a partner to help get your business through to the other side in case of a cyber security event.

 

The facts

In 2020 ransom and extortion claims accounted for 1 in every 5 cyber claims, up from 1 in every 10 cyber claims in 2018.

 

A ransomware attack on businesses is predicted every 11 seconds, and the global ransomware damage costs predicted to reach $20bn in 2021, up from $325m in 2015.


According to an AIG observation, network outages and business interruption from global ransom and extortion claims are lasting 7-10 days .


By 2025, global cybercrime costs is estimated to reach $10.5 trillion.

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Understanding Credible Coverage, Affordable Coverage, and 2025 Marketplace Tax Credits

August 4, 2025
Navigating health insurance options can feel overwhelming, especially with all the terms and guidelines around coverage and affordability. At Simco, we want to help you and your employees make sense of it all, from understanding what qualifies as credible coverage to how affordable coverage is determined, and what the income limits mean for Marketplace tax credits in 2025. What Is Credible Coverage? Credible coverage refers to health insurance plans that meet or exceed the minimum standards set by government regulations. This is important because if you have credible coverage, you generally don’t qualify for premium tax credits through the health insurance Marketplace. Examples of credible coverage include: Employer-sponsored group health plans Medicare and Medicaid Certain veterans’ health plans Individual health insurance plans that meet minimum essential coverage standards Most employer-sponsored health plans, whether from small businesses or large corporations, are considered credible coverage. This means if you or your employees have health insurance through your job, it likely meets these standards, protecting you from paying unnecessary penalties and possibly disqualifying you from claiming Marketplace subsidies. Why does credible coverage matter? Because if you already have credible coverage, you generally won’t qualify for premium tax credits on Marketplace plans. The government uses this benchmark to ensure people aren’t “double-dipping” by receiving subsidies when they already have adequate insurance. What Does Affordable Coverage Mean? Affordable coverage refers to the cost threshold for employer-provided health insurance that determines if it’s affordable relative to your household income. The IRS sets this threshold annually, and for 2025, the maximum employee-only premium cost to be considered affordable is 9.02% of your household income . Here’s how it works: If the monthly premium you pay for employee-only coverage is less than 9.02% of your household income, your coverage is deemed affordable. If it costs more, you or your employees may be eligible for Marketplace subsidies or tax credits if you choose to enroll there instead. This affordability standard helps employees understand if they have access to reasonably priced insurance through their employer or if Marketplace options might be a better fit financially. Income Guidelines for 2025 Marketplace Tax Credits To qualify for premium tax credits that help lower the cost of Marketplace health insurance, your household income must fall within certain federal poverty level (FPL) ranges. For 2025, individuals and families with household incomes between 100% and 400% of the federal poverty level may be eligible for these credits. The exact dollar amounts vary depending on your household size and location, but generally, the lower your income within this range, the greater your potential tax credit. These credits are designed to make health insurance more accessible and affordable for people who do not have credible or affordable coverage through an employer. Why This Matters as the 2025 Annual Enrollment Period Approaches With the 2025 Annual Enrollment Period (AEP) approaching soon (October 15 to December 7), it’s the perfect time to review your Medicare coverage and evaluate your options. Many people discover that their current plans may no longer be the best fit, or that marketplace options and tax credits could help bridge coverage gaps. Simco is here to guide you and/or your employees through the complexities of health insurance during AEP and beyond. We’ll assess your situation, explain your options, and guide you through enrollment with confidence. Have questions? Contact us today! We’ve got you covered. 

Simco Launches Investment Advisory Services Through Simco Financial

August 3, 2025
At Simco, we’re always looking for ways to bring more value to the businesses we serve. Now, we’re excited to announce a powerful new addition to our suite of advisory services: Simco Financial , our new investment advisory division focused on business retirement plans. “This is a big step forward for us,” said Marc Simmons, founder and CEO of Simco. “Just like we’ve built strong advisory support around HR and benefits, we’re now doing the same for retirement. Simco Financial gives our clients direct access to licensed investment advisors, right from within the Simco ecosystem.” Why We’re Expanding Into Investment Advisory For many business owners, offering a retirement plan is a key part of attracting and retaining top talent. But navigating the complex world of 401(k)s, fiduciary responsibilities, and investment options can be overwhelming, especially when it’s not your day job. “We believe the retirement plan is an incredibly important part of the life cycle of a business,” Simmons explained. By bringing licensed investment advisors in-house, Simco can now deliver unbiased guidance on a range of retirement solutions, from custom 401(k) plans to products like the Simco PEP (Pooled Employer Plan). Whether clients are starting a new plan or reevaluating an existing one, they’ll now have a dedicated advisor to support them from strategy through implementation. What This Means for Our Clients “This advisory service is completely unbiased,” Simmons emphasized. “The PEP, which we often promote, is just one of the products we offer. Our team is here to advise on whatever platform or solution is truly best for your business.” In other words: you’re not locked into a one-size-fits-all option. Simco Financial advisors work with your goals in mind and help ensure your retirement plan is compliant, cost-effective, and competitive. What’s Next? For now, Simco Financial is focused on group retirement plans for businesses . Individual investment services are on the horizon, but not yet available. “We’re starting with the group side,” said Simmons. “But stay tuned, there’s more to come.” With this move, Simco is continuing to expand its value to clients as a true one-stop advisory partner . From HR and benefits to now retirement planning, businesses can get the support they need: simplified, centralized, and personalized. Disclosures: Simco Financial is a registered investment advisor and a division of Simco. Investment advisory services are offered through Simco Financial only to clients or prospective clients where Simco Financial and its representatives are properly licensed or exempt from licensure. The information provided herein is for educational and informational purposes only. Investment and Insurance Products Are: Not Insured by the FDIC or Any Other Government Agency Not a Deposit or Other Obligation of, or Guaranteed by, Any Bank or Bank Affiliate Subject to Investment Risks, Including Possible Loss of Principal Simco's Pooled Employer Plan (PEP) is offered through Simco HCM. Investment advisory services related to the PEP are provided by Simco Financial. Insurance products are sold through Simco Capital, which is licensed in the state of New York.

5 Reasons Why It’s Time to Automate Open Enrollment with a Unified HCM Platform

July 15, 2025
Open enrollment season: the yearly juggling act of compliance, employee questions, and endless paperwork. If you’re still managing benefits with spreadsheets, emails, and disconnected systems, it’s time for a serious upgrade. At Simco, we’ve seen firsthand how automating open enrollment through a unified Human Capital Management (HCM) platform makes life easier for HR teams and employees alike. Here are five reasons why your business should make the switch, and why your workforce will thank you. 1. Slash Errors and Save Time with Automation Manual benefits administration? It’s a recipe for costly mistakes and wasted hours. A unified HCM platform syncs data instantly across HR, payroll, and insurance, cutting out double entries and compliance slip-ups. That means fewer headaches for your HR team and more accurate payroll deductions for you. What you get: Real-time updates when employees change status or eligibility Automatic compliance checks Less time answering repetitive benefits questions 2. Give Employees a Smooth, Self-Service Experience Your employees live on their phones (whether it’s banking, booking appointments, or shopping). Benefits enrollment should be just as easy. With a single login, employees can compare plans, enroll, and update info anytime, anywhere. Bonus: AI-powered decision tools make choosing the right coverage simpler than ever. Why it matters: Boosts employee confidence, satisfaction, and engagement Fits their busy schedules, not yours Simplifies benefits communication and reduces HR support requests 3. Stay Compliant Without the Last-Minute Scramble Open enrollment comes with a complex web of federal, state, and local regulations that must be followed precisely. From tracking Affordable Care Act (ACA) requirements to managing COBRA eligibility and distributing mandatory notices, the compliance checklist can quickly become overwhelming, especially when benefits data is scattered across spreadsheets, emails, and disconnected systems. Without a centralized platform, HR teams often find themselves scrambling at the last minute to gather accurate information, complete audits, and submit reports, putting the organization at risk for costly penalties and damaging employee trust. A comprehensive HCM system builds compliance into the process from the ground up. Eligibility rules, coverage limits, and regulatory requirements are automatically enforced and updated, minimizing human error and ensuring you stay ahead of deadlines and regulatory changes, reducing stress and protecting your business. 4. Stand Out in a Competitive Talent Market Benefits remain one of the most powerful ways to demonstrate to your employees that they are valued. However, a confusing or frustrating enrollment process can quickly undo that goodwill, leading to disengagement and even turnover. In today’s competitive job market, providing a seamless benefits experience is no longer optional, it’s essential. According to our HCM technology partner isolved’s 2025 Workforce Report: 50% of employees say they would seriously consider looking for a new job following a poor open enrollment experience. 90% of job seekers actively compare benefits packages before accepting a job offer, often prioritizing ease of access and clarity. This means that a complicated or outdated enrollment process isn’t just an inconvenience, it’s a real risk to your ability to attract and retain top talent. Investing in a user-friendly, automated benefits platform helps position your company as a modern employer of choice, showing that you care about your employees’ experience every step of the way. 5. Free Up Valuable Time for Your HR Team Open enrollment season often means an overwhelming amount of compliance tasks, employee questions, and administrative work, all on a tight deadline. When benefits management is manual or spread across multiple disconnected systems, it drains your HR team’s time and energy. Automating open enrollment with a unified platform reduces the need for repetitive data entry and minimizes errors, which means fewer fire drills and less time spent fixing problems. This allows your HR professionals to shift their focus from paperwork to higher-value activities like employee engagement, strategic planning, and talent development. In other words, the right technology doesn’t just streamline processes, it gives your HR team the bandwidth to do what really matters: support your people and help your organization thrive. Ready to leave enrollment headaches behind? Get in touch with us today to see how a unified HCM platform can transform your benefits process, making it easier, smarter, and more employee-friendly.

Have a question? Get in touch.