Cybercrime and Benefits Plans
May 24, 2022
According to recent estimates from the University of Maryland, there is a cyberattack every 39 seconds. Data breaches and cyberattacks are daily headlines—and employee benefits plans are no exception to that threat.
In fact, employee benefits plans are even more vulnerable as the coronavirus pandemic continues. Organizations and benefits providers are relying heavily on electronic access, ultimately creating new vulnerabilities.
The Risks
Virtually any type of employee benefits plan is vulnerable to hackers. The plans can be exposed to risks relating to privacy, security and fraud.
Retirement, savings and health plans are attractive targets for cybercriminals seeking access to plan assets and the personal information of participants and beneficiaries. Sensitive information is valuable information when it comes to cyberattacks.
Benefits plans are at risk as a result of the following factors:
- Personally identifiable information such as Social Security numbers, birthdates and email addresses have significant value to hackers. That information can be misused over a long period of time since it is permanently associated with an individual.
- Financial information, including enrollment data, account balances, direct deposit information and compensation are highly attractive. Hackers could target those online accounts to request loans, distributions and withdrawals.
- Lastly, there are multiple attack points for hackers since benefit plans are connected to several outside service providers, such as those that offer retirement plans, health insurance, vision insurance, dental insurance, short-term or long-term disability insurance, and flexible spending accounts.
Some examples of cyberthreats include phishing, malware and ransomware attacks. Lost or stolen mobile devices, laptops and flash drives that hold personal information are additional tangible threats to benefits plans.
The Consequences
Cyberattacks on benefits plans can have substantial consequences for all parties involved. Consider the following:
- Significant costs may be incurred in detecting the extent of the breach, investigating and managing the incident response, recovering compromised data and restoring overall system integrity.
- The theft of personally identifiable information and other plan assets may result in monetary losses to participants, beneficiaries, the plan, the plan sponsor and service providers.
- Organizations may experience operational disruption and reputation damage as a result of a security breach. Additional costs will be incurred to respond to and resolve either of those issues.
- Breaches of health plans may result in potential violations of the federal law that restricts release of medical information, exposing the plan sponsor and service providers to fines.
Mitigating Risks
As many employees and providers may be working from home, it’s especially important to understand cyberthreats and how to proactively protect sensitive organization and employee information. To mitigate cyber risks, consider the following measures:
- Properly monitor technology. To better protect and control data, it’s important to maintain up-to-date technology across the organization. Identify current vulnerabilities by conducting a gap analysis, penetration testing or other assessments.
- Educate employees. Start with properly training employees, especially those who are working remotely, on how to handle personnel data. This could be as simple as compiling and sharing cybersecurity tips. Think about physically protecting electronic devices and information (e.g., locking laptops and hiding information on camera) in addition to secure document storage and destruction. Pay special attention to common risks like passwords, attachments and Wi-Fi networks. Employees should always be vigilant, but may have their guards down while working from home.
- Educate participants. Similar to the points above, it’s important to educate participants about cybersecurity and different kinds of potential threats. It’s a good idea to thoroughly explore and ask questions about service providers’ security policies.
To shift cyber risks, consider the following measures:
- Review contracts. Legacy contracts don’t consider modern-day cyber risks. It’s important to review contractual arrangements to ensure vendors provide an appropriate level of protection against cyber risks.
- Obtain comprehensive insurance policies. Cyber liability insurance covers financial losses that result from data breaches and other cyber incidents. Most policies include both first-party and third-party liability coverages. It’s important to review and understand business insurance policies to understand whether additional coverage is needed.
With many employees working remotely as a result of the pandemic, plan sponsors should consider updating work-from-home policies to include cybersecurity clauses.
Other Considerations
Open enrollment season is a good time to carefully review organization and vendor security technology and policies, along with any contracts, insurance or other coverage. All parties involved should have adequate data protection strategies in place.
Always be prepared for the worst to happen. In the unfortunate event of a security breach, it’s important to be prepared with a basic communication and action plan. Even better, incorporate security breaches in an organization’s comprehensive reputation management plan. Keep in mind all internal and external audiences, and appropriate actions to protect information and restore overall system integrity. If not handled quickly and appropriately, reputational damage could be an additional threat to all parties involved in employee benefits plans.
Click here to download a pdf of the Top Tips to Avoid Cyberattacks.
To learn more about mitigating cyber risks in today’s digital world, contact SimcoHR today.
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When school lets out, many working parents face a new set of challenges: piecing together childcare, coordinating summer camps, adjusting work schedules, and simply trying to maintain a sense of balance. For employers, this season presents a valuable opportunity to demonstrate empathy and build stronger connections with your workforce—especially your working parents. By offering the right policies, benefits, and workplace flexibility, your company can help parents manage the summer shuffle—while keeping productivity and morale strong. Here are a few impactful ways to make that happen. 1. Offer Flexible Scheduling Options Summer schedules are rarely predictable, especially for parents with younger children or teens involved in day camps, sports, or part-time jobs. Allowing employees to shift their working hours or compress their workweeks can be a game-changer. Early start and end times, four-day workweeks, or staggered hours give parents the flexibility to handle family logistics without sacrificing their jobs. What you can do: Encourage managers to have open conversations with team members about their summer availability. Promote cross-training so employees can support each other during flexible hours or time off. Formalize a “Summer Flex Hours” program to show company-wide support. This kind of trust-driven flexibility not only improves work-life balance but also boosts engagement and retention. 2. Revisit Your Remote or Hybrid Work Policy For companies that support remote work, summer is an ideal time to offer extra flexibility. Parents may need to be closer to home for child supervision or to avoid time-consuming commutes during camp drop-offs and pickups. Even one or two remote days per week can ease the mental load on parents—helping them stay focused and productive during working hours. And it signals a deeper commitment to employee wellbeing. Ways to implement: Offer a seasonal “summer remote work option” if your company is traditionally office-based. Empower department heads to tailor remote work flexibility to their team’s needs. Reinforce accountability and results-based performance to support this model. Tip: Simco is happy to help you review your remote work policy for both compliance and employee satisfaction! 3. Promote and Educate on Dependent Care Benefits Many organizations offer dependent care support, but employees often forget—or aren’t aware—of what’s available. Summer is a perfect time to highlight programs like: Dependent Care FSAs (tax-free childcare reimbursements) Childcare subsidies or stipends Backup care assistance Employee Assistance Programs (EAPs) with parenting or caregiver resources Tip: Create a simple “Summer Benefits Guide” or a quick email campaign highlighting available benefits. If your team uses a digital portal or app, make sure this information is easily accessible and up to date. 4. Plan Ahead for PTO and Team Coverage Summer means vacations—and for working parents, this might be the only chance they get to spend extended time with their families. That’s why it’s crucial to encourage early vacation planning and transparent communication among teams. Strategies to support summer PTO: Ask employees to submit summer PTO requests as early as possible. Use shared calendars and collaborative tools to coordinate team coverage. Train back-up team members ahead of time to avoid last-minute stress. Consider adding a floating summer holiday or mental health day to give employees a breather. When employees feel supported in taking time off, they’re more likely to return refreshed and ready to re-engage. 5. Build a Family-Friendly Workplace Culture Supporting working parents isn’t just about policies—it’s about creating a culture of empathy and understanding. That starts with leadership modeling flexibility, and continues with teams who respect boundaries and accommodate personal obligations. Ideas to build culture: Create a parent resource group or Slack channel to exchange ideas and support. Share local summer camp or childcare resources in your company newsletter. Avoid scheduling late afternoon meetings that may interfere with family commitments. Celebrate family milestones or kid-friendly moments in a light-hearted way. These small cultural cues can go a long way in helping working parents feel seen, supported, and valued—especially during a season that’s often more stressful than relaxing. Final Thoughts Supporting working parents through summer break isn’t just the right thing to do—it’s a smart business strategy. Offering flexibility, benefits education, and an understanding culture helps companies retain top talent, foster loyalty, and create a healthier workplace for all. Need Guidance? At Simco, we specialize in helping businesses implement people-first policies and scalable benefit solutions. If you’re looking to enhance your workplace support for parents (or all employees), our specialists are here to guide you! Let’s talk about how we can help your workforce thrive—this summer and beyond.
Let’s be honest—mid-year reviews often don’t get the attention they deserve. They sneak up between vacations, project deadlines, and Q3 planning. But when done right, these check-ins can be one of the most valuable tools you have for keeping employees engaged, aligned, and growing. They’re not just about checking a box or filling out a form. Mid-year reviews are a chance to reconnect, recalibrate, and reenergize your team—and they can have a big impact on retention and performance. So, how do you make these conversations count? Let’s break it down. Why Mid-Year Reviews Actually Matter Think of the mid-year review as a strategic pit stop. You’ve made it halfway through the year—now’s the time to assess what’s working, what needs adjusting, and where your people want to grow. And here’s why that matters: Companies that implement regular performance feedback see 14.9% lower turnover rates than those that don’t, according to Gallup Employees who receive consistent feedback perform better and are more engaged overall, according to studies conducted by the Harvard Business Review Employees are far more likely to stay when they know their growth is supported The takeaway? People want feedback. But more importantly, they want useful feedback—along with the tools to take the next step forward. What to Ask: High-Impact Questions Performance reviews should feel like conversations, not interrogations. Open-ended, thoughtful questions help create space for honest dialogue. Below are a few ideas to keep the conversation flowing—and meaningful. Goals & Achievements What’s been your proudest accomplishment this year? What challenges have you worked through—and what did you learn? Are we on track with the goals we set earlier this year? Strengths & Value What are you most confident about in your role? Where do you feel you're making the biggest impact? Growth Opportunities Are there any skills you’re itching to develop? Where could we offer more support or resources? Looking Ahead Where do you see yourself a year from now? What kind of training or experiences would help you get there? This isn’t just about reviewing the past—it’s about setting the tone for the future. Turning Feedback into Development: Exploring the Role of Learning Management Systems Identifying growth opportunities during a performance review is just the first step—real transformation happens when you take action on that feedback. One effective way to support employee development is by leveraging a Learning Management System (LMS) . An LMS provides a structured and scalable way to turn feedback into forward momentum—whether you're preparing someone for a promotion or helping them build confidence in new skills. Key LMS features that support performance development include: Personalized learning paths aligned with individual or team goals Access to broad training libraries, including compliance and skill-building content Tools to track progress and measure learning impact Engaging elements like AI assistance, gamification, and peer learning These tools transform performance feedback into growth, helping businesses create a continuous learning culture. Look No Further At Simco , we support our clients through every stage of the performance management journey — from crafting the right review questions to delivering personalized, scalable learning opportunities. Our integrated HCM technology includes the isolved Learn & Grow Module, which features: 89,000+ courses including SCORM and state-compliant training Custom curriculums for individuals and teams AI-driven search and chatbot support Dashboards, reporting, gamification, and more Final Thoughts: Mid-Year Reviews Are a Strategic Lever Mid-year reviews are more than a checkpoint — they’re a chance to re-engage your team, show appreciation, and chart a clear path forward. When you treat them as an opportunity for dialogue, reflection, and action, the benefits ripple across retention, morale, and performance. Want to make your next round of reviews truly impactful? Let’s talk about how Simco can help streamline your process and empower your people.
Each spring, New York State enforces a residential burn ban from March 16 through May 14 to help prevent wildfires. As of yesterday, the ban has officially been lifted , but fire safety should remain top of mind. While the Finger Lakes has seen steady rain this week, the risk of fire can still escalate quickly with a few dry, breezy days. If you’re planning to burn brush, enjoy a backyard fire pit, or take part in spring clean-up, it’s important to do so with caution. Why Does the Burn Ban Exist? The annual burn ban is in place to reduce the threat of wildfires during one of the most vulnerable times of the year. In early spring, before trees and vegetation fully green up, dead grass, leaves, and branches are dry and highly flammable. Combined with seasonal winds and low humidity, even small outdoor fires can spark large, fast-moving wildfires—especially in rural areas. This proactive ban has proven to significantly lower the number of wildfires across the state each year, protecting homes, farmland, and natural habitats. What Homeowners Should Do Now With the ban lifted, it’s a good time to: Review your homeowners insurance to ensure you're protected against fire-related damages. Practice safe outdoor burning , such as keeping fires a safe distance from structures and never leaving them unattended. Consider additional coverage for properties with wooded acreage or high-risk features. At Simco , we’re here to help you navigate risks like these—before they become problems. Whether you need a policy review or simply want to make sure your coverage keeps pace with your lifestyle, we’re just a call or click away .
