Daily News

The most recent MassBenchmarks Board meeting showed a lapse in the economic recovery, as factors including the labor market, inflation, the Omicron variant, and the Ukraine conflict have fomented uncertainties. As a result, although Massachusetts continues to outperform the U.S. economy by most measures, there has been a notable slowdown in economic activity. 

In the first quarter of 2022, following six straight quarters of growth, both Massachusetts’ real gross state product and national real gross domestic product (GDP) saw reversals, declining by 1.0% and 1.4% percent at annual rates, respectively. This is a stark contrast to the last quarter of 2021 when annualized growth rates were 7.8% and 6.9%, respectively, according to the U.S. Bureau of Economic Analysis (BEA). 

In contrast to GDP, payroll employment in Massachusetts maintained its forward momentum and actually accelerated in the first quarter of 2022. Payroll employment, for example, increased at both the state and national levels, up 5.2% at an annual rate in Massachusetts in the first quarter, slightly higher than the 4.8% rate for the U.S. However, because Massachusetts experienced some of the most severe job losses and dramatic increases in unemployment rates in the nation during the early stages of the pandemic in 2020, employment remains 2.4% below peak (a deficit of 89,000 jobs). 

In contrast, the U.S. is now about 1.0% below its February 2020 jobs peak, according to the U.S. Bureau of Labor Statistics. The divergence of GDP and employment growth trends during the first quarter indicates a large decline in productivity — more people are working but output is decreasing. The productivity decline could be driven by the fact that low-wage sectors (with below-average productivity) are currently leading job growth, and/or by other factors such as supply constraints that are limiting production, and labor hoarding. The latter possibility is consistent with the historically low level of layoffs. 

 

In terms of GDP growth, Massachusetts and other states have followed national trends more closely than in previous business cycles, according to the board. This is likely due to both regional economies becoming more diversified over time as industries are less localized as well as the pandemic having a large economic impact on all states. For example, COVID-related stimulus spending is promoting greater convergence among the states in general — allowing most to ride the same wave towards fiscal recovery. As such, the national economic situation, including its endemic risks, have a great bearing on the Massachusetts economy. 

Daily News

SPRINGFIELD American International College (AIC) has signed an articulation agreement with Springfield Technical Community College (STCC), formally establishing a close academic relationship between the two-year college and the four-year institution. 

This accord between American International College and Springfield Technical Community College aligns academic programs that enhance the seamless transition of STCC graduates and qualified candidates from STCC, and promote a smooth, successful transfer to AIC. 

This articulation agreement offers time and cost savings for students by recognizing the coursework pursued at the community college and demonstrates the ongoing commitment of both AIC and STCC to the community and its students, by ensuring that educational pathways are created for all those who wish to consider a degree in higher education. 

At AIC, the program is referred to as Direct Connect. Direct Connect transfer students automatically receive a $4,000 scholarship in addition to their earned merit scholarship, before any need-based aid is awarded. This means Direct Connect students can earn up to $18,000 in financial gift aid, not loans, before being evaluated for additional need-based aid. And, unlike some other transfer articulation agreements, the Direct Connect program at AIC allows students to study and major in their area of interest while attending their community college. 

“We are honored to have entered into a partnership with Springfield Technical Community College,” said American International College President Hubert Benitez. The execution of articulation agreements with our community colleges, exemplifies AIC’s vision of expanding the services we provide to our students and to the communities we serve. In this time where the value of education is being questioned, we are ensuring that students not lose time or credits in the transition.”  

“We appreciate the continued collaboration between STCC and AIC, and welcome, in particular, the program-specific nature of this partnership,” said STCC President John Cook. “As neighbors just over a mile from one another, it is wonderful to continue our shared commitment to college access and affordability.”    

More information about American International College’s Direct Connect program and other undergraduate, and graduate degree programs can be found online at www.aic.edu. 

Daily News

SPRINGFIELDLara Sharp, dean of the School of STEM at Springfield Technical Community College, was named to the American Society for Engineering Education (ASEE) Engineering Technology Council. 

Sharp is the only community college representative on the council.  

The ASEE is a nonprofit organization of individuals and institutions committed to furthering education in engineering and engineering technology. The ASEE Engineering Technology Council is committed to promoting quality engineering technology education. 

“It is an honor to be voted on to the Engineering Technology Council,” Sharp said. “This will be an opportunity to share best practices and develop new ideas that we can use in our engineering technology programs at STCC.” 

Vice President of Academic Affairs Geraldine de Berly said Sharp’s membership benefits the School and STEM and students enrolled in the programs. 

“I’m delighted that Lara Sharp will be the STCC representative on the ASEE Engineering Technology Council,” de Berly said. “By serving in this position, she will have an opportunity to share ideas with distinguished colleagues in colleges and universities across the nation. We see this as a win for our students and faculty.” 

The only technical community college in Massachusetts, STCC offers a wide variety of programs in science, technology, engineering and math, many of which cannot be found elsewhere in Western Mass. The college offers affordable transfer options in engineering and science as well as two-year degrees and one-year certificates that prepare graduates for positions in the region’s workforce. 

Programs include civil engineering technology, electrical engineering technology, mechanical engineering technology, optics and photonics (laser technology), and more. 

Sharp was named dean of the School of STEM in 2021. Her professional experience includes six years at St. Petersburg College in Clearwater, Fla., as the program director for Engineering, Manufacturing and Building Arts and also serving as the acting dean of Natural Sciences, Engineering, Manufacturing, and Building Arts. 

From 2013-2015, she was at the Corporate College of Polk State College, in Winter Haven, Fla., managing National Science Foundation (NSF) and Department of Labor (DOL) grants in advanced manufacturing and engineering technology. 

Sharp spent more than 11 years teaching chemistry, natural science and engineering to high school students at various locations. 

Sharp also brings industry experience, having worked at Specialty Minerals Inc. as a process engineer and an operator technician as well as an educational consultant for PASCO Scientific. 

She has been recognized for her outstanding teaching as well as her community engagement including a STEM Woman of the Year Award from Girls Inc. STEM stands for science, technology, engineering, and math. 

Daily News

BOSTON — New technologies aimed at reducing patients’ and health-care workers’ exposure to drug-resistant bacteria, detecting important ocean data, and determining genetic disorders linked to autism and other medical conditions could get closer to market thanks to $250,000 in seed funding announced today by University of Massachusetts President Marty Meehan. 

Ten faculty research projects will each receive up to $25,000 from the Technology Development Fund, which helps to commercialize scientific breakthroughs throughout the five-campus University of Massachusetts. The fund is overseen by the Office of Technology Commercialization and Ventures (OTCV) at the UMass President’s Office in Boston. 

“As a public research university, UMass has a duty to drive innovation that strengthens the socio-economic fabric of our communities, nation, and world,” said President Meehan. “With these grants, we’re investing in world class faculty who are carrying out our mission through their cutting-edge discoveries, attracting the highest quality collaborators, and bringing the results of research to the marketplace.” 

The Technology Development Fund awards provide supplemental funding to help close the gap between UMass research discoveries and proven technology that address the most pressing issues facing the region, the nation, and the world, often laying the groundwork for major breakthroughs.  

“These faculty projects showcase how UMass continues to realize long-term growth and achievement in its commercialization enterprise,” said Carl Rust, Executive Director of Industry Engagement and Business Development, who oversees the OTCV initiative.  

The UMass system drives discovery and economic growth throughout the state, conducting $752 million in annual research and development in fields critical to the Commonwealth’s economy. Pre-pandemic, the university generated $7.5 billion in statewide economic activity – a 10-to-1 return on investment by the Commonwealth.  UMass supports close to 50,000 jobs in Massachusetts, including nearly 18,000 faculty and staff members and more than 30,000 private sector jobs.  

Since 2004, UMass has invested nearly $3 million in faculty R&D projects through the Technology Development Fund. Projects are chosen for their commercial viability, in hopes that development of the technology will lead to a startup company or licensing agreement. Funding for the annual awards comes from commercial licensing income on previous faculty discoveries.  

UMass continues to have a strong record of generating income from the commercialization of its academic research – $257 million over the last five years – and typically places among the top 25 universities in a national survey of income generated by technology transfer.  

 

This year’s recipients of the $25,000 Technology Development Fund awards include: 

 

Carlos Gradil, DVM, MS, PhD, DACT, Department of Veterinary & Animal Sciences — UMass Amherst: This project is advancinga new ‘frameless’ magnetic contraceptive intrauterine device (IUD) based on physics and specifically designed to conform to a female’s body. The long-acting magnetic device offers the same efficacy as current IUDs, but with greater safety, easy insertion and removal, and reduced pain risks without the need for strings. The modified devices will include traditional copper coatings to make these IUDs capable of providing a reliable, nonhormonal contraception option.  

 

Alexander Suvorov and Richard J. Pilsner, Department of Environmental Health Sciences — UMass Amherst:  The team is examining how advanced paternal age at fertilization is a risk factor for many health conditions in offspring, including neurodevelopmental and psychiatric disorders and different forms of cancer. Researchers have developed atherapeutic intervention that resets encoded epigenetic information of sperm into a younger state. Significant demand is anticipated for these therapies that will restore “young” epigenetic program in sperm of older men to ensure healthy offspring.  

 

Adam Grabell and Tauhidur Rahman, Department of Psychological and Brain Sciences — UMass Amherst: The team has created EarlyScreen, a lab-based game and algorithm that detects the presence of psychological disorders in preschool children with a high degree of accuracy compared to commonly used diagnosis tools. Psychological disorders emerging in the first few years of life often persist across later developmental stages and into adulthood, resulting in significant impairment and societal costs. The emerging signs of psychological disorders are difficult to differentiate from normative misbehavior in early childhood, creating a “when to worry” problem for caregivers and providers. EarlyScreen’s algorithm automatically extracts features such as facial expressions, gaze, and head movement from video footage.  

 

Jie Song, Department of Orthopedics and Physical Rehabilitation — UMass Chan Medical School 

The team has developed StaphShield, a metallic implant-coating capable of on-demand release of antibiotics to prevent biofilm formation and bone infection caused by S. aureus, a type of bacteria found on human skin. The technology provides timely release of antibiotics to kill the bacteria before they have a chance to colonize the implant or invade surrounding bone. Researchers aim to tailor the StaphShield formulation as off-the-shelf dip-coatings where the drug load could be conveniently adjusted based on different clinical needs and the coating could be consistently applied to commercial implants by medical staff without altering implant manufacturing. 

 

Joel D. Richter, Department of Molecular Medicine — UMass Chan Medical School: The Richter Lab team is researching Fragile X Syndrome (FXS), a genetic disorder that is the most common inherited form of intellectual impairment and most frequent single gene cause of autism worldwide. FXS is caused by a CGG triplet repeat expansion in the gene FMR1, resulting in the absence of the RNA binding FMRP. Children with FXS and an FMR1 mutation may have speech and development delays, hyperactivity, aggression, epilepsy, and other health issues. The team’s technology has discovered that white blood cells from FXS individuals 1 have altered RNA splicing, which serves as a statistically robust blood biomarker for the disorder that could facilitate the development of new therapeutic inventions to treat the disease. 

Daily News

WASHINGTON — More than two years into the pandemic,Americans report that gas prices and inflation will impact their summer travel decisions more than concerns about COVID-19, according to a new survey conducted by Morning Consult and commissioned by the American Hotel & Lodging Association. 

Memorial Day weekend marks the start of summer travel season, a traditionally busy time for the hotel industry. And this year, nearlyseven in 10 Americans (69%) report being likely to travel this summer, with 60% saying they are likely to take more vacations this year compared to 2020-21. 

New concerns about gas prices and inflation, however, are impacting Americans’ travel plans in a variety of ways. Majorities say they are likely to take fewer leisure trips (57%) and shorter trips (54%) due to current gas prices, while 44% are likely to postpone trips, and 33% are likely to cancel with no plans to reschedule. 82% say gas prices will have at least some impact on their travel destination(s). 

The survey of 2,210 adults was conducted May 18-22, 2022. Other key findings include: 

  • 68% of Americans agree they have a greater appreciation for travel because of missed experiences during the COVID-19 pandemic;
  • 57% are planning a family vacation this summer, a majority of which plan to stay in a hotel;
  • 46% are likely to travel overnight for a family event such as a wedding, birthday, anniversary, or family reunion;
  • 25% are likely to travel for Memorial Day; 32% for 4th of July; and 27% for Labor Day;
  • 60% say they are likely to take more vacations this year compared to 2020-21;
  • 60% are likely to attend more indoor gatherings;
  • 57% are likely to take longer vacations;
  • 56% are likely to take trips to farther-away destinations; and 
  • 90% say gas prices are a consideration in deciding whether to travel in the next three months (50% major consideration, 23% moderate consideration, 17% slight consideration, 10% not a consideration)

“The pandemic has instilled in most people a greater appreciation for travel, and that’s reflected in the plans Americans are making to get out and about this summer,” said Chip Rogers, president and CEO of AHLA. “But just as COVID’s negative impact on travel is starting to wane, a new set of challenges is emerging in the form of historic inflation and record high gas prices. We will be keeping a close eye on these issues and urging Congress and the administration to do the same in order to help ensure they don’t negatively impact hotels’ continued pandemic recovery.”

Community Spotlight

Community Spotlight

By Mark Morris

Carolyn Brennan

Carolyn Brennan says that while Hadley is a small town, the traffic and visitation it sees every day create some big-city challenges.

In some ways Hadley is a tale of two communities.

One is a small farming town, known locally — and even beyond — for its asparagus. The other Hadley exists on Route 9, the main artery running through town that can see up to 100,000 vehicles a day bringing people to shopping centers, universities, hotels — and neighboring towns.

This dual nature brings obvious opportunities and challenges — and many of both — to this Hampshire County community.

The opportunities are clearly evident all along Route 9 — retail outlets of every kind that bring people, and vital tax revenue, to the town. The challenges … they are clearly evident as well.

And one of the biggest is meeting the demands of those 100,000 vehicles using the town’s infrastructure with the staff and budget of a small town.

“The perception is that Hadley is a small town, but it really isn’t when you consider the number of people who are here during the day,” said Carolyn Brennan, town administrator.

In the first round of American Rescue Plan Act (ARPA) funding, Hadley received $1.5 million, which was used to address repairs to two culverts as well as repairs to the dike that runs next to the Connecticut River. The town sought separate funding for its largest infrastructure project, a 2¼-mile reconstruction of Route 9. When complete the road will be widened for additional traffic lanes and bus shelters, and storm drains will be upgraded.

Brennan said that because Route 9 is a state road, the Mass. Department of Transportation (MassDOT) is splitting costs with the town. Brennan explained that the town will open the road to fix the infrastructure below, and MassDOT will handle the widening and new pavement.

“The perception is that Hadley is a small town, but it really isn’t when you consider the number of people who are here during the day.”

“The initial phase of the work has begun, like clearing brush and marking utility poles that will be moved,” Brennan said. “There will be much more activity in the next few months as the town begins to replace storm water and sewer lines.” The project is expected to be completed by 2026.

According to Brennan, communication is essential to keep traffic flowing while construction is occurring. Baltazar Contractors stays in close contact with the town when road work is planned. This approach is already paying dividends, as Baltazar had initially planned road work for May 13, the day of the UMass commencement ceremony at McGuirk Stadium.

“We quickly notified them to not do any road work that day to avoid a traffic tie-up,” Brennan said. “It would have been insane.”

Claudia Pazmany

Claudia Pazmany says businesses and events in Hadley are returning to their pre-pandemic levels.

Brennan also shares the weekly construction schedule with Claudia Pazmany, executive director of the Amherst Area Chamber of Commerce.

“Hadley has been incredible with communicating when road work will be taking place,” Pazmany said. “It allows us to let businesses know what the traffic patterns will be.”

And lately, traffic has been heavier as the region returns to something approaching normalcy after two years of pandemic.

Indeed, business in Hadley is definitely picking up, with Pazmany reporting that more businesses are returning to pre-pandemic hours of operation and events like the Asparagus Festival (June 11) are back on the schedule.

“I’m hearing from our local hotels that weekends are booked solid from now through the end of the summer,” Pazmany said. “The hotel folks are also saying their receipts are back up to 2019 levels. That’s huge.”

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at a town that is much more than a bridge between Amherst and Northampton.

 

Fruits of Their Labor

Echoing Pazmany, Drew Perron, co-owner of Arizona Pizza at the Hampshire Mall said his business is vibrant, with numbers approaching those of 2019. He gave credit to his staff to help get through the worst of the pandemic.

“Many of our employees are long-termers and have been with us from seven to 12 years,” Perron said. “We made it through this entire ordeal thanks to their dedication.”

Once part of a chain, Arizona Pizza is now locally owned by Perron and his business partner. While its location is tucked around the back of the mall, customers have no problem finding it.

“I’m very thankful we have a number of regulars who kept us going through COVID and they continue to support us,” Perron said.

“I’m hearing from our local hotels that weekends are booked solid from now through the end of the summer. The hotel folks are also saying their receipts are back up to 2019 levels. That’s huge.”

With Cinemark theaters located next to Arizona Pizza, blockbuster movies help keep the restaurant busy.

“Doctor Strange came out last weekend, and that was a good weekend for us,” Perron noted. “I communicate with the general manager at Cinemark, because the more successful they are, the more successful we’re going to be.”

Perron and Cinemark working together is an example of the cooperative spirit that motivated Andrea Bordenca to locate two businesses in Hadley.

Bordenca is CEO for both Diversified Equipment Services & Consulting Organization (DESCO) and Venture Way Collaborative.

DESCO is a service company where technicians maintain and repair technology such as EKG machines, operating room tables, and similar equipment found in hospitals and other healthcare facilities. Founded by her father in 1970, Bordenca worked through the ranks of DESCO with positions in quality assurance and sales. While her dad taught her some basics of business, Bordenca realized she had no leadership skills and was motivated to enroll in the Institute for Generative Learning (IGL) an international leadership training and coaching organization.

“I wanted to create a higher leadership role for myself to carry on the legacy of my father and of DESCO,” she explained, adding that she credits IGL for teaching her how to be a leader and how to grow the company by centering DESCO’s focus on building and aligning teams.

“Over the past 15 years, we have more than doubled in size, doubled in revenue, and quadrupled in profitability,” Bordenca said.

Her training at IGL so inspired Bordenca that she now owns the U.S. affiliate for the training organization. Other affiliates are in Latin America, the United Kingdom and Asia, making her one of four owners and operators of IGL.

That brings us to her second business, Venture Way Cooperative in Hadley, where IGL is located. While DESCO had been in Eastern Mass since its founding, Bordenca moved the company’s headquarters to the Venture Way location in May 2020.

“When I came to Western Mass I saw lots of collaboration and a sense of commitment for each other to succeed,” said Bordenca. “I just didn’t see that kind of collaboration in Eastern Mass.”

The two organizations currently have 61 employees, with Bordenca serving as CEO for both entities. DESCO has a national presence with an office in Miami and field technicians who work from home in various states. She was able to coordinate the company’s move to Hadley without losing any employees.

“We’re looking to triple in size over the next five years,” Bordenca said. “We want to share our culture and our ability to build teams and create engagements to other states.”

When BusinessWest spoke with Bordenca she was planning a ribbon cutting and open house to introduce more people to IGL and DESCO. To illustrate what happens at DESCO, a service technician will hold a demonstration at the open house of how they service a sterilizing machine. The technician will also work with something more familiar to most people, an ice machine — DESCO also services ice machines for restaurants, hotels and surgery centers.

“On the training side of Venture Way, I’ve invited local speakers to talk about the work they’re involved in to begin a dialog about the ways community members can help affect change together,” Bordenca said. “This is the first of many events like this and we’ve begun lining up great local leaders to present in the coming months.”

One way Bordenca sees Venture Way helping DESCO is by training a more diverse workforce to step in as older workers retire. She admitted that technicians in the industry have traditionally been mostly white and male.

“We want to make sure our industry is visible to all genders and races,” she said. “At Venture Way we can expose people to what we do and even offer mini courses so more people can get a taste of this as a career.”

Large numbers of workers reaching retirement age is happening in all professions. Brennan said it’s an ongoing challenge for Hadley.

“In the next few years, we will see a significant number of highly skilled, intelligent workers retiring and leaving with lots of historical knowledge about the town,” Brennan said. “The real challenge is encouraging younger people to work in municipal government.”

Brennan is working on a more robust internship program between UMass and the town to introduce public policy majors to the workings of a municipality.

“Once people start working with a municipality, they’re hooked for life,” Brennan said, relating to her own experience where, after working in municipal government, she took a job in the private sector for a short time but could not wait to get back into municipal work. “I was hooked, and we just have to get new people hooked.”

Pazmany, who recently took part in a workforce-strategies panel, said a trend is emerging where modern workers want to be part of something bigger than just having a job and are more concerned about a community focus in their work.

In her role at the chamber, Pazmany makes many direct connections among area businesses and has found new ways to help employers fill positions.

“Members are allowed to upload job listings, which we then upload to our social media sites,” Pazmany said. “We’ve posted hundreds of jobs in the past several months.”

 

Experts in Their Fields

Bordenca said she’s excited about moving DESCO to Hadley, calling it the perfect location for what the company does.

“Hadley is more centrally located to serve customers throughout the Northeast in places like New York and Vermont,” Bordenca said. “This location makes us feel closer to our employees and our customers in lots of ways.”

Perron concurred, noting that Hadley is a town that works well for his restaurant. He also gave credit to the current Hampshire Mall management as the best he’s seen in well over a decade.

“I like being a tenant here because the mall managers are very good about working with us and caring about us,” Perron said.

He’s also encouraged by the continued growth of the Route 9 corridor and the number of people it brings to the town.

“I see an uptrend happening here,” said Perron, who is clearly not alone in that assessment.

Law

A Matter of Policy

By Michael Roundy

 

Since early in the COVID-19 pandemic, businesses small and large have been seeking insurance coverage for business losses incurred when the virus or governmental orders forced them to close their doors. Although policyholders have enjoyed mixed results, the outcome of insurance coverage lawsuits ultimately turns on the particular language of the policy at issue.

Two common provisions have become the primary focus of many of these suits: The physical damage requirement, and the virus exclusion. Cases continue to turn on the precise language used in these provisions, or on the absence of the provisions from the policy at issue. As more cases work their way through the state and federal courts, certain outcomes have become more predictable.

“Two common provisions have become the primary focus of many of these suits: The physical damage requirement, and the virus exclusion. Cases continue to turn on the precise language used in these provisions, or on the absence of the provisions from the policy at issue.”

Many cases have turned on the requirement, included in most but not all policies, that the coverage-triggering event must have caused “direct physical loss of or damage to” the property. Policyholders have argued that the physical harm or loss requirement is met in the COVID context because the virus itself is in the air at the business and physically changes the air, airspaces, property, and property surfaces, that require cleaning to remediate the harm, which has directly led to the loss of use of the property for its intended business purposes.

Insurers, on the other hand, have repeatedly argued that physical loss or damage must include some form of tangible damage or physical alteration to the property itself, rendering the property damaged or unusable such that it must be either discarded, replaced, or repaired.

For the most part, courts have agreed with the insurers on the interpretation of physical damage provisions, and have dismissed COVID coverage suits on the grounds that while the virus may contaminate surfaces, it does not damage them and therefore does not trigger the business interruption coverage that policyholders are seeking. Courts have held that even if the virus has contaminated certain surfaces, the contamination can easily be eliminated by ordinary cleaning and disinfection and the need for cleaning does not constitute a “direct physical loss.”

Even so, not all policies include the same “direct physical loss” language.

Courts, in their analyses, have placed emphasis on the immediacy of the word “direct” such that the absence of the term — a policy requiring only “physical loss” — may provide an opening for insured parties to argue for coverage despite the ever-expanding string of losses on the issue.

Other policies, less commonly, may lack the “physical loss” or “physical damage” requirement altogether. Careful and thorough analysis of policy language may reveal the availability of claims typically dismissed, depending on the specific language used.

However, even those cases that survive the physical-loss inquiry may often be dismissed by courts because of a so-called virus exclusion. In the wake of the SARS epidemic of 2002-2003, many insurers added specific virus exclusions to their policies, adopting language developed by industry groups.

Although SARS infected only a few thousand people, it led to millions of dollars of successful claims against commercial insurance policies for business-interruption coverage. Having been, in effect, forewarned, insurers were better prepared for the litigation arising from the COVID pandemic. Thus, even if a policyholder can demonstrate physical loss or circumvent the physical damage requirement, if there is one, many suits are also being dismissed on the basis of the virus exclusions that are now present in many policies.

Virus coverage cases have faced a particularly difficult time in federal courts, with almost half of them being dismissed on the basis of a lack of physical damage, the presence of a virus exclusion, or similar grounds. Roughly a third of the federal cases continue to work their way through the litigation process, and most of the remainder have been voluntarily dismissed. State courts have generally been more forgiving and provided policyholders with occasional victories.

For example, several state courts in Pennsylvania have either permitted claims to survive motions to dismiss or even granted plaintiffs summary judgment on the issue of the physical damage requirement, one finding that the loss of use was enough to satisfy the requirement. An Oklahoma court found that “direct physical loss” was satisfied where the property was rendered unusable for its intended purpose by the presence of the virus, without requiring any physical alteration of the property. Plaintiffs’ claims have survived dismissal in several California cases as well, where the courts concluded that the phrase “any physical loss” includes the loss of the ability to access or use the property.

Thus, it remains clear that the issues have not been definitively decided in all cases or all jurisdictions. Cases will still turn on the language used in the specific policy before the court and the court’s receptiveness to broader readings of the meaning of “loss.” Prosecuting and defending COVID coverage suits requires counsel adept at reviewing and interpreting policy contract language and conversant in the broader landscape of coverage suits playing out in multiple jurisdictions across the country. u

 

Michael Roundy is a partner in Bulkley Richardson’s litigation department; (413) 272-6200.

Innovation and Startups

Spinning Ideas into Gold

The three partners of the Alchemy Fund

The three partners of the Alchemy Fund, from left, Chris Bignell, Chris Sims, and Brett Gearing, say the Pioneer Valley has no shortage of entrepreneurs with ideas that can be turned into profitable companies.

When BusinessWest first spoke with the founders of the Alchemy Fund four years ago, their vision of helping entrepreneurs spin their ideas into profitable businesses by providing funds, advisory services, business acumen, and more, was itself just an idea.

And as the Alchemy partners started raising the fund, their idea was met with some skepticism, they recalled, noting that some wondered out loud if there would be real need for the services they wanted to provide — if there would be any deals to be made.

In the four years since, those doubts have largely been erased.

“It turns out there are a lot of people in this area who have the urge to innovate,” said Chris Sims, co-founder and partner of the Alchemy Fund. “We’ve found a bunch of people who are dreamers and ideas people, who saw opportunities and started to act on them.”

And with help from the fund and its founders, many are moving well beyond the concept state and into operation. Overall, Alchemy now has 13 portfolio companies across its two funds that together boast more 73 employees — the majority of which are local.

“It turns out there are a lot of people in this area who have the urge to innovate. We’ve found a bunch of people who are dreamers and ideas people, who saw opportunities and started to act on them.”

Holyoke-based Clean Crop Technologies, which produces technology that removes contamination from foods, is one of those companies. Clean Crop could have located anywhere — but chose to be in Western Mass. and is making it happen here through the help of many components to the region’s entrepreneurship ecosystem, including the Alchemy Fund.

“We were introduced through Forge, an innovation and manufacturing ecosystem support group with offices in Western Mass.,” said Dan White, the company’s CEO and co-founder. “They introduced me to Chris Sims. Chris and Alchemy were the first institutional capital commitment on Clean Crop’s seed-round raise.”

Alchemy helped Clean Crop create a battle plan to turn what it had, something that works in academic papers, into a working product — while also providing insight into how to bring it to customers. In the course of doing so, Clean Crop was able to do complete two rounds of major funding, both of which Alchemy participated in, from several investors, including the MassMutual Catalyst Fund.

“Chris is an extended part of the Clean Crop family; he has helped us sharpen our strategy at key intervals, and provides executive coaching and advisory office hours twice a month with our leadership team,” White explained. “He consistently helps sharpen our focus and prioritize resource deployment to the most relevant questions at that moment.”

There are several emerging success stories like Clean Crop in the Alchemy Fund portfolio, and together they confirm what the fund’s partners knew back in 2018.

“There’s some real validation to what we believed would happen,” said Brett Gearing, another of the founders. “We’re actually seeing and witnessing what we envisioned. It’s exciting for us for sure.”

Indeed, a lot has happened at Alchemy over the past years. For starters, its founders have launched two funds to invest in early-stage startups outside of the tech hubs of Boston and New York — with a focus on Western Mass. It has deployed all of the capital in the second fund, and will commence fundraising for its third fund soon.

“Within two years we will definitely have our third fund raised,” said Chris Bignell, Alchemy partner. “There might be some geographic expansion, and there might be a different mix of companies that we would invest in.”

Geographic expansions, yes, but Alchemy is keeping its focus local. Sims explained that in places like Boston or New York, venture capitalists typically end up chasing the same two deals as everyone else — in other words, they have an abundance of capital with a shortage of deals.

“Chris is an extended part of the Clean Crop family; he has helped us sharpen our strategy at key intervals, and provides executive coaching and advisory office hours twice a month with our leadership team. He consistently helps sharpen our focus and prioritize resource deployment to the most relevant questions at that moment.”

The reverse is true for Western Mass. Alchemy has run into what could be called a potentially good problem here — a situation where many companies are chasing a limited amount of capital. Competed deals like those in Boston are expensive, so by operating in Western Mass., Alchemy has been able to seize opportunities of the same caliber as those in major tech hubs for just a fraction of the cost.

Opportunities like Clean Crop, which has developed technologies that some are calling game-changers within the food industry.

“By definition, they are pushing the boundaries of something that hasn’t been done before,” said Sims, adding that as portfolio companies like Clean Crop grow and evolve, they attract top talent to the region.

“If you look at the folks we’re drawing into these companies, it’s not just the number — we’re creating a type of employment that literally didn’t exist here before,” he went on. “Now we’re saying you can go work at Clean Crop and help make Holyoke Massachusetts a stop on the road to the next green revolution.”

The seed-round raise White referred to was a start-up fundraising event in 2020 where Clean Crop Technologies raised $3 million — which was followed by a $6 million seed round in 2022, just two years later. He went on to explain that even before that commitment, Alchemy worked with Clean Crop for months to help sharpen its business strategy and target milestones in order to maximize its ability to raise capital.

This is an example of how the fund’s menu of services to portfolio companies extends beyond providing needed capital.

Similar to the way a sports coach would help out an up-and-coming athlete, Alchemy helps its clients upgrade their business model, assign veteran executives as mentors, add differentiating technology, and much more.

“It’s that first 10 yards that are the hardest for people who are disconnected from the norms that are obvious if you live in a major tech hub and everyone around you is doing this all the time,” Sims explained. “Here, it’s a pretty lonely experience because … who do you look to as an example?”

Alchemy has essentially bridged that gap. What the three Alchemy partners have found is that when they get entrepreneurs to the stage where their concepts can attract investments from a seed-round standpoint, they can then coach them all the way to the next level — and the next level, and the next. The companies they work with become competitive not just locally, but nationally.

“They are as good as anybody, which shouldn’t be a surprise,” said Sims.

And there’s another gap Alchemy is seeking to close. When Sims and Brett Gearing founded the Alchemy Fund, they identified a huge gap in venture dollars per capita in comparison to tech hubs like Boston and New York.

Sims, Gearing, and Bignell all concurred that startups like the ones they work with enhance and transform areas like Western Mass. into the type of place someone would want to live and do business. The Alchemy Fund sees the region between Boston and New York overflowing with opportunities, and aims to help make it just as alluring as those metro centers.

“There is something to be said for us getting in at the early stages so that these companies get a flag in the ground while it’s even harder for them to move to make the decision to go to Boston or New York at that point,” Bignell explained. “If we can get them in, get that flag in the ground… they start creating these jobs.”

And the jobs are generally well-paying jobs, he went on, the kinds of jobs that can bring people to an area like Western Mass. And as more of these jobs are created, and more people are drawn to the area, there is a snowball effect, seen in many areas around the country where startups flourish.

Yes, a lot has happened since the last time the Alchemy Fund and BusinessWest sat down together — and the story continues to generate new and exciting chapters.

“Whereas four years ago we got the reaction ‘there are no deals there, you’re wasting your time, you won’t find any entrepreneurs there,’ four years from now I hope we get the reaction, ‘of course there are deals there, why wouldn’t there be?’” Sims concluded.

Elizabeth Sears can be reached at [email protected]

Innovation and Startups

Cooking Up Sustainability

By Kailey Houle

 

UMass Amherst Dining is serving up a new dish. Sort of. It’s called sustainability.

The dining program, long ranked among the best in the country, if not the best, is adding a focus on foods and their carbon footprint to what has been a steady diet of information provided to students about how to make smart choices about what to eat each day.

Ken Toong

Ken Toong says that by serving more plant-based dishes, UMass Dining is helping students on campus reduce their carbon footprint.

UMass Amherst Dining is teaming up with MyEmissions, a food carbon-label company, to bring a sustainability factor to the table, an initiative that could be considered part of a broader, campus-wide focus on carbon footprints — and how to reduce them.

Indeed, in April, UMass Amherst Chancellor Kumble Subbaswamy proposed a plan to be a net-carbon zero university by 2032. And a survey of UMass students conducted this spring shows 75% believing their food choices impact the environment, and 76% believing it is important to reduce their carbon footprint. But they didn’t know where to begin.

“We started incorporating kelp on the menu — talk about a superfood; it’s a carbon sink, meaning it puts carbon back into the atmosphere. We partnered with a group in Maine that works with off-season lobstermen to grow kelp, and it’s going really well. We’ve done research and development on it, and again, we’re educating students that not only is kelp a superfood for your health, but it’s also a climate superfood.”

Low-carbon dining — an experience UMass is striving to perfect — refers to making food choices that have low greenhouse gas emissions associated with their life cycle. Examples of low-carbon foods include nuts, soy products, local vegetables, and dairy alternatives; high- carbon foods include beef, lamb, cheese, chocolate, and coffee. To combat higher emissions UMass sources its high carbon foods locally, and all of the low-carbon foods offered are grown locally and, in some cases, on campus.

“My team and I researched the issue and we have partnered with MyEmissions,” said Kathy Wicks, director of Sustainability at UMass Amherst. “They analyze each recipe for its carbon footprint. So we export our recipe, they analyze it, and then they send it back to us so we can put it on the menu identifiers and on the app.”

Elaborating, Wicks said that such analysis involves giving a rating — A through E, with A being the highest, or best grade — to each individual recipe based on its carbon footprint. A carbon footprint, as it relates to food, is the amount of carbon emissions, methane, or carbon dioxide involved in the food’s production. It takes into account the life cycle of whatever one is measuring, its land use, processing, transportation, and packaging. UMass has been able to reduce some of its carbon emissions already by partnering with local farmers and facilities to feed their students.

MyEmissions has worked with European restaurants to help them reduce their carbon footprint, but UMass Amherst Dining is the first university program in the country to be introducing an initiative like this. And as an anchor institution in the region and a recognized leader and innovator among dining programs, UMass is looking to tell a story others will follow.

“Yeah it’s delightful that we did it first, but it’s a better feeling knowing we can help our students make a better choice,” said Ken Toong, executive director of Auxiliary Enterprises at UMass Amherst, which oversees the dining program. “Food matters and I think this is an important thing for the UMass community.”

Wicks agreed, and noted that through this new initiative, the university hopes to better inform students about foods and their impact on the planet and perhaps inspire them to consider options — like kelp.

“We started incorporating kelp on the menu — talk about a superfood; it’s a carbon sink, meaning it puts carbon back into the atmosphere,” she explained. “We partnered with a group in Maine that works with off-season lobstermen to grow kelp, and it’s going really well. We’ve done research and development on it, and again, we’re educating students that not only is kelp a superfood for your health, but it’s also a climate superfood.”

Overall, plant-forward dining, and that includes kelp, helps to reduce the overall carbon footprint. Low-carbon foods are able to be grown, prepared, sourced, processed, and transported in ways that emit minimal greenhouse gas into the atmosphere. Food production in the United States makes up 20% of overall greenhouse gasses and globally it’s about 30%. UMass Dining works with local fair-trade-certified farmers and rely on permaculture gardens to source their meals.

Kathy Wicks

Kathy Wicks says educating students on their food choices gives them the ability to take action to help the planet.

“We’ve been working with our local partners for a long time, we also work closely with companies around their practices and how they relate to sustainability,” Wicks said. “And this is a way we can help students practice everyday climate action with every food choice that they make.”

Wicks and others we spoke with stressed repeatedly that they are not trying to tell students what to eat. Rather, they are providing information that will help them make smart choices about what they might want to eat — information that goes beyond calories and ingredients and dives into a food’s overall impact on the planet

“We play a role in educating them on food literacy, but we also love to talk about food,” said Wicks. “We added this to the conversation because it is top of mind for so many people and the campus community as a whole.”

Carbon-use identifiers will be added to each menu, along with previous identifiers for allergies, ingredients, sustainability, plant-based, and locality.

“We have a very comprehensive menu system — we have identifiers for allergies, ingredients, and now they can assess it through the apps or on signs,” said Toong. “We just add it on the carbon calculator and put the rating on the menu.”

Toong said the Amherst campus is perhaps more diverse than ever, with many students, including those who are Asian, Latin, and Indian students seeking authentic cuisine that is mostly plant-based. More than 70% of the school’s menu items are already plant based, catering to vegetarians, vegans, and those with a more plant-driven diet.

“We’ve been working with our local partners for a long time, we also work closely with companies around their practices and how they relate to sustainability. And this is a way we can help students practice everyday climate action with every food choice that they make.”

“We know that plant-forward meals are going to be a trend; there is still meat, but smaller portions,” said Toong. “We only give three-to four-ounce red meat portions, and same thing with chicken. We’re selling more seafood and more plant-based dishes. This has really helped us make the decision to start the program.

“We’re not saying ‘don’t eat red meat,’ — we’re just suggesting smaller portion sizes,” he went on. “We don’t tell them what to eat — we provide them with information. But we want to promote more than just food, we want to promote culture and cuisine. Our goal is to work with students and the community to try to make the world a better place. We can do it by working together.”

Those we spoke with said the partnership with MyEmissions is merely another step in efforts to promote sustainability. They stressed the need to back up the information being provided with conversation about how to make smart choices.

“We’re not just going to put the information up there — we’re going to continue dialogue with our students about it and show them and give them tips that low-carbon dining is as easy as A, B, C,” said Wicks. “We’ve been dedicated to healthy, sustainable, delicious food for a long time. We always want to do more to enhance the student experience.

“We listen closely to what the students have to say,” she went on. “We listen closely to what they’re concerned about and what they are interested in and what their values are… the entire campus’ sustainability and the current issues with climate change are at the top of mind for everybody. So our expertise is food and customer service — that’s the area we want to do more. We know it has an impact on our environment.”

By making simple changes like trying out some new A-Rated dishes, anyone can help lower the carbon footprint — and those at UMass Dining know small changes like that can make a huge difference.

Technology

Protecting Yourself from IT Threats

By Charlie Christensen

 

As hackers, organized crime syndicates, and state-backed bad actors aggressively pursue ways to compromise the world’s data; business owners, leadership, and IT professionals continue to seek ways to counter these ever-growing threats to their information technology infrastructure. In this article, I will explore some of these threats, as well as the advancements in anti-virus/malware protection that are working to defend corporate and personal data every minute of every day.

Lastly, I will provide you with some key steps you should take to protect your business and data assets from attack.

Charlie Christensen

Charlie Christensen

The notion that you are just too small a company to worry about these threats, or that no one wants your data is a fallacy. Criminals are targeting small companies every day because they are easy targets.”

As someone who understands the threats we as IT professionals see every day, it is my hope that I can use this opportunity to provide the average businessperson with a better understanding of what they should focus on most urgently in today’s technology environment, and how they can better protect their business from being compromised.

• Ransomware: This is every company’s worst nightmare and is a topic that we could dedicate an entire article on. In short, ransomware is an extortion scheme that costs businesses billions of dollars per year. It most commonly spreads via malicious email attachments or links, software apps, infected external storage devices, and compromised websites.

Ransomware searches out every computer on the network and seeks to encrypt the data it finds. The only way to get the data back is to pay the extortion, usually via cryptocurrency which is largely untraceable. Not content with simple extortion, cybercriminals are now adding an additional element to the ransomware scheme.

Attackers will now download your data prior to encryption, and if you refuse to pay, they will threaten to release your data into the public domain. If the thought of this doesn’t lead you to a few sleepless nights, it should.

• Phishing, spear phishing, and whaling attacks: I think by now we all understand phishing. An attacker uses social-engineering techniques, like an enticing looking link, to get the end user to disclose some form of personal information such as a Social Security number, information, credentials, etc. Spear phishing, however, is a bit more focused and targeted. A spear-phishing message might seem like it came from someone you know or a familiar company like your bank or credit card company, shipping company, or a frequented retailer.

Whaling, on the other hand, goes after high-value targets such as C-level leadership or accounts payable. A whaling attack might look like an email from the CFO asking you to initiate a transfer to pay a large invoice. This is an incredibly common attack vector and one that relies on your team’s ability to identify it. Education and vigilance are your best defense.

• Advanced persistent threats: APTs happen when an intruder gains access to your systems and remains undetected for an extended period. They seek to quietly extract data such as credit card data, social security numbers, banking information, and credentials. Detection relies on the ability to identify unusual activity such as unusual outbound traffic, increased database activity, network activity at odd times. APTs also likely involve the creation of backdoors into your network.

• Insider threats: Although we are fixated on external threats, internal threats are more common and can be equally as damaging. Examples of intentional and unintentional threats include:

Intentional threats such as employees stealing data by copying or sending sensitive or proprietary data outside the company. This may occur via email/FTP, USB drive, cloud drive (One Drive, Dropbox, iCloud), or some other means. Often, these happen because someone fails to comply with security protocols because they are perceived to be inconvenient or “overkill.”.

Unintentional threats might include an employee clicking on a phishing email, responding to a pop up asking for credentials, not using a strong password, or using the same password for everything. It could also be a system that was not patched, a port that was left open on a firewall, or forgetting to lock a user account after termination.

• Viruses and worms: Frequently considered to be ‘old school’ threats, these still exist and can cause tremendous damage. Users should be careful about clicking on ads, file sharing sites, links in emails, etc. Their purpose is to damage an organization, systems, data, or network. However, traditional anti-virus software is usually effective at controlling them.

• Botnets: Simply put, a botnet is a collection of devices that have access to the internet like PCs, servers, phones, cameras, time clocks, or other commonly found networked devices. These devices are then infected by malware that allows criminals to use them to launch attacks on other networks, generate spam, or create other malicious traffic.

• Drive-by attacks: These are infected graphics or code on a website that gets injected into your computer without your knowledge. They can be used to steal personal information, or inject trojans, exploit kits, and other forms of malware.

While this list might seem exhausting, it only represents a few of the more common attack methods that we see daily. It also helps explain the emergence of a new generation of security products and platforms. To better understand how we look at information security, let me borrow one of the examples I commonly use when speaking to businesspeople and groups about building an effective Information Security Program.

Think of information security as an onion. Like an onion, information security programs are comprised of layers (firewall, backup, AV, email filtering, etc…) of protection surrounding the core (your data). As we build an information security program, we need to put layers of protection between the threat and the asset we are trying to protect. While the details of an information security program are outside the scope of this article, for the purposes of this discussion you only need to understand that there is no single magic product that can protect you from all threats. Anti-virus, or even the new generation endpoint detection and response (EDR) products are but one layer of protection in an over-arching strategy to protect your business from modern threats.

A brief history of antivirus (AV) products has them coming onto the scene in the late 1980s, with familiar names like McAfee, Norton, and Avast. These early products relied on signature-based definitions. Much like you look up a word in the dictionary, these AV products could catch defined threats, but they would easily fail to prevent attacks that had yet been discovered; or worse, that they had not yet downloaded an update for that would allow them to recognize the threat. Traditional AV changed very little until several years ago with the advent of Next Generation Antivirus. NGAV uses definitions coupled with predictive analytics driven by machine learning to help identify undefined threats.

The latest technology to hit the market is enhanced detection and response (EDR) or extended detection and response (XDR). These technologies continue to use traditional signature-based antivirus and NGAV, but they also introduce the use of artificial intelligence (AI).

AI is used to constantly analyze the behavior of devices so it can detect abnormal activities like high CPU usage, unusual disk activity, or perhaps an abnormal amount of outbound traffic. This new generation of software not only detects an attack and warns you that it is occurring, but it can also isolate the attack to the device(s) that are infected by automatically taking them off the network and protecting the rest of your network. Some EDR products like SentinelOne also have threat-hunting capabilities that can map the attack as it unfolds. This mapping aids IT professionals in the identification of devices involved in the attack; a process that can take days or weeks when performed manually. XDR even goes a bit further in that it looks beyond the endpoint (PC, laptop, phone) and looks at the network holistically.

A good example of how EDR systems are being used as a layer of protection is how SonicWall firewalls combine a physical firewall with a suite of security capabilities like content filtering, DPI-SSL scanning, geo-blocking, gateway antivirus, and more to filter traffic before it enters your network. Then, with the addition of their Capture Client product (a collaboration between SonicWall and SentinelOne), they integrate the power of SentinelOne EDR with the firewall’s rules. This allows you to extend protections beyond devices inside the network and include company devices outside the network as well. This helps to eliminate gaps in protection that can exist with remote users.

The notion that you are just too small a company to worry about these threats, or that no one wants your data is a fallacy. Criminals are targeting small companies every day because they are easy targets. Large companies have armies of highly educated and well-paid people protecting their networks. And while a large company might represent a big score, hackers can spend years trying to penetrate a large network. However, they know smaller organizations have limited budgets and staff to protect their network. This makes it far more lucrative to hit 50 or 100 small companies for $100,000 than a single large company for, say, $2 million.

Investing in modern security products, building a sound information security program, and educating your team will pay off in the long run, as the question is not if you will be attacked — but when. The cost of the systems to protect you is far less the frequently irreparable harm caused by a breach or infection.

Many people say, ‘I have cyber insurance,’ but fail to put the necessary precautions in place to protect their systems and data. Little do they know that when they filled out the pre-insurance questionnaire and answered ‘yes’ to all the questions, they gave the insurer the ability to deny the claim. If you do not have written policies, use EDR (or at least NGAV), have a training program in place, and use multifactor authentication to protect user logins, you could be sealing your own fate. Insurers are no longer baffled by today’s technology and are aggressively investigating cyber claims. In fact, we are seeing significantly increasing numbers of denied claims.

There is little you can do after the fact to offset missing protections or enforcement of policies. By taking the appropriate steps to protect your network and systems you can hopefully minimize the risk of falling victim to an attack and ensure that your insurer will cover such a claim. Insurance companies will go to great lengths to cover legitimate claims at great cost. In fact, they can be their own worst enemy. In many ransomware attacks, insurance companies will simply pay the ransom because it is more expeditious to do that than it is to pay for the actual remediation. This, of course, only encourages the criminals while leading to higher premiums and greater risk to our technology infrastructure.

To close, I’d like to leave you with a few things that you can do to better protect your systems, data, and network.

• Take the time to understand what protections you have in place and engage a professional to help you identify any gaps in your information security strategy;

• Educate your staff on information security best practices and the threat spectrum. An educated workforce is one of your best protections. There are several great training tools that are inexpensive and easy to implement, such as KnowBe4;

• Implement a next-generation firewall that utilizes deep packet inspection and take the time to dial in the suite of security features that are designed to stop threats before they get into the network;

• Move to an EDR system rather than relying on a traditional signature-based antivirus;

• Be sure that all systems with access to your networks (computers, network equipment, servers, firewalls, IoT devices, cameras, etc.) are patched regularly to eliminate vulnerabilities that can be easily exploited;

• Do not run unsupported operating systems, equipment, or applications;

• Establish a set of written information security policies, and make sure everyone understands that they need to live by them; and

• Limit those with administrative credentials on your network. If an administrative account is compromised, you have given away the keys to the kingdom. Make sure users only have permission to get to the resources they need to do their job.

 

Charlie Christensen is president of East Longmeadow-based CMD Technology Group; http://www.new.cmdweb.com/; (413) 525-0023.

Technology

The Best Defense Is a Good Offense

By Sean Hogan

In a recent study, Stanford University and a top cyber security organization found that more than 85% of all data breaches are caused by human error. The standard practice for prevention of breaches is enabling tools to detect and prevent breach attempts.

Most breaches are prevented with tools such as anti-virus, spam filtering, and edge protection. But what about the attempts that slip through these defense systems? That’s where education comes in to play.

Cyber criminals are constantly evolving and changing their methods for cyber-attacks. The best software and security tools can eliminate many of the known attack methods but there is no company, security, or software package that that can claim 100% success for eliminating threats. The game is constantly changing, and to keep up with unknown threats and techniques it is critical that we all educate and train ourselves to be hyper vigilant when it comes to cybersecurity.

Sean Hogan

“In a recent study, Stanford University and a top cyber security organization found that more than 85% of all data breaches are caused by human error.”

It is critical to teach your staff about cyber-attacks. I tell my clients to always question everything; if you aren’t expecting an email with a drop box link, then don’t open it, and certainly don’t click the link. Hackers have upped their game when it comes to disguising malicious content. Hackers will use credentials from sources on the dark web, and the more thorough hacker will do some social engineering and gather information about the targets on public websites and social media platforms.

The more believable they are, the more effective they can be. I recommend scanning tools to alert companies whenever there are credential breaches that have appeared on the dark web. This will allow security teams to know when credentials have been breached, where credentials were breached, and who will provide the credentials. These tools will reveal passwords, password policies, or lack thereof.

Common passwords are one of the easiest low hanging fruits to be used by hackers. Let’s pretend you use your business email to log into an online app like Uber. If Uber is breached, the hackers will have access to your Uber password, but if you use that same password or a similar password elsewhere, like in your banking app, the hacker can use scanning tools and password-hacking tools to easily get into your other accounts. The object is to make it as hard as possible to breach your accounts; don’t make it easy for a junior hacker to wreak havoc.

We recently had a client forward us an email that he thought might be a phishing attack. All the details were accurate, everything was spelled correctly. The ‘sent from’ address had one difference, it was sent from a registered .net domain not the company’s legitimate .com address. Other than that, everything was accurate. The hacker had the wherewithal to create a domain and register that domain as a .net. (Lesson learned, reserve all similar URL’s to prevent this from happening!)

This one example was a sophisticated attempt to convince the client to create a wire transfer; the client now has a policy of triple-checking and confirming any transactions with multiple steps.

The best way to teach your staff about attacks is to create a fake phishing attack. We create and run fake attacks to our staff and our clients. We have a library to choose from, and we can simulate a bank request, a Netflix credential reset, a credit card alert just to name a few. These attacks mimic real attacks. The recipient reactions are tracked, and reports are made available after the campaign has expired.

The email is delivered (allowed on purpose past our filters), the recipient can open, click, and provide data. We call this the trifecta! Normally opening an email is not malicious by itself; clicking the link can activate embedded malware. If a recipient does take the bait, then the training software will automatically play an educational video that teaches that staff how they were fooled and what to look out for in the future.

When the campaign has ended the results are tallied in a report. The report will tell you how many opens, clicks, and credentials. The report will also indicate whether the end-user sat through the educational video. This is a great tool to use from a cybersecurity perspective. Teach your staff, install best-in-class edge protection, spam filtering, end-point protection, anti-virus, dark-web scanning, and backup. Overall, don’t overlook the most important step: Promote awareness and create a strong anti-cyber culture in your office.

 

Sean Hogan is president of Hogan Technology Inc.; www.teamhogan.com; (413) 779-0079.

Opinion

Editorial

 

Lawyers representing the families that filed a class-action lawsuit against the state in the wake of the deaths of 84 veterans at the Holyoke Soldiers’ Home in the spring of 2020 — and family members themselves — contend that the state’s willingness to pay $56 million to those families is an admission that this tragedy, one of the worst COVID-19 outbreaks, was preventable and never should have happened.

And they are right in that assessment. While COVID presented a stern challenge to every long-term facility in the country, and deaths were recorded at most all of them, what happened at the Soldiers’ Home was different. What happened there was negligence — on many, many levels.

The 29-page lawsuit charged that the state “made a promise to its citizen-soldiers” to care for them after they served their country but failed to stem the spread of COVID-19 through the home, which it said, “was preventable.”

“The Commonwealth did not keep its promise to protect and keep them safe from harm when they were unable to care for themselves,” the complaint states. “Our veterans deserved better.”

This is an understatement. It was and is the state’s responsibility to place those soldiers in the hands of administrators capable of leading a healthcare facility, and it was and is the state’s responsibility to make sure that those placed in these positions are doing the jobs they were hired to do.

In the case of the Holyoke Soldiers’ Home tragedy, neither of these responsibilities were met.

The lawsuit repeatedly cited the findings of the state-ordered investigation by attorney Mark Pearlstein, who found that leaders at the Soldiers’ Home made ‘utterly baffling’ mistakes in responding to the outbreak. These mistakes were not the result of poor leadership — they were the result of unqualified leadership.

The consequences were catastrophic — 84 lives were lost, and countless other lives were shattered by those losses.

Families of the victims, and even Gov. Baker himself, have acknowledged that the money from the settlement — roughly $400,000 for each victim — doesn’t end the pain. But for many impacted by this tragedy, it will bring a sense of closure.

We’re hoping that it will bring something else — a deeper commitment on the part of this state and other states to uphold their promises to constituencies like the veterans in Holyoke and to take more seriously the responsibilities they have to place such facilities in the hands of people capable of running them.

It wasn’t long after the full scope of the tragedy in Holyoke revealed itself that it became clear that this calamity simply didn’t have to happen. Any doubts were erased by the state’s willingness to settle this lawsuit. The state did the right thing by settling and can do the right thing again by making sure that the lessons learned here are heeded and those in power remain vigilant in their efforts to ensure that something like this never happens again.

Opinion

Editorial

 

The Community Foundation of Western Massachusetts announced recently that Katie Allan Zobel will be stepping down from her role as president and CEO of that vital agency. A search for a successor has commenced and a transition should be completed by September.

We’re confident that a worthy successor will be named, but these will be big shoes to fill, indeed. During her tenure, Zobel took an already successful agency to new heights in terms of the work that it does and the lives that it impacts, and she is to be commended for all that she has done.

The Community Foundation was never just about writing checks and dispensing scholarships to students and funds to nonprofits. But on Zobel’s watch, the agency took philanthropy in many different directions, but especially the realm of working to solve problems in our community rather than simply throw money at them.

Under Zobel’s leadership, the Community Foundation of Western Mass. launched Valley Gives, which has raised more than $10 million through annual one-day, on-line fundraising campaigns for local nonprofits. Valley Gives has helped bring attention to the needs of hundreds of the region’s nonprofits, and it inspires more individuals and groups to give, because the foundation has made it easier to do so.

Another initiative launched during Zobel’s tenure is Valley Gives, a partnership with the Barr Foundation established to support a vibrant arts and creativity sector in Western Mass., an initiative that is already giving a louder, stronger voice to this important sector of the local economy.

Still another initiative launched during Zobel’s tenure is an effort to support research on college completion, with the understanding that it’s not enough to give a worthy student a scholarship; there is a need to help ensure that the student can successfully complete their college education and then put their degree to work.

And then, at the height of the pandemic, Zobel led efforts to create the Community Foundation’s COVID-19 Response Fund to support community members and nonprofit partners most severely impacted by the pandemic and its many side-effects.

It was initiatives like these and Zobel’s leadership efforts to create them that earned her the distinction of being named one of BusinessWest’s Women of Impact, and the Community Foundation itself being named a Difference Maker by the magazine this spring.

But for Zobel, it’s never been about awards, and it has never been about her. Instead, it’s been about her team, and a laser focus on how the foundation can make this region stronger and more resilient.

In short, she has helped take philanthropy to a higher plane in this region, and she is to be commended for the many accomplishments she has led.