Noosa Council Confirms $2 Million Loss in Alleged International Fraud
Noosa, Queensland – Noosa Council has revealed it lost $2 million in an alleged international fraud incident that occurred 10 months ago. The council publicly disclosed the details on Monday evening via a statement on its website and a social media post, prompting questions about the delay in releasing the data.
Chief Executive Officer roger Sengstock defended the timing of the announcement, stating he was restricted from speaking publicly sooner to avoid compromising an ongoing examination. “I had been unable to do so until now, so as not to compromise [the] ongoing investigation,” Sengstock said in a statement.
The council reported the incident to the Queensland Audit Office and relevant ministers,fulfilling its statutory responsibilities,according to Sengstock. He further revealed that the alleged perpetrators were already under investigation and that “social engineering AI techniques” were employed in the fraud. While details remain limited, Noosa Council confirmed these techniques can include tools like deepfake video and audio, but declined to comment further on specifics.
In response to the incident, an “incident crisis response team” was immediately established, and existing operating procedures were reviewed to mitigate future risks. The council has already begun implementing improvements to its financial processes based on recommendations from the Queensland Audit Office, including the installation of additional third-party software.
“Council takes its financial obligation very seriously and on behalf of management, I am sorry that this has happened,” Sengstock stated. He also issued a warning to other councils and local businesses to remain vigilant and continuously review their financial procedures.
Despite the significant financial loss, Sengstock expressed relief that no individuals were directly impacted and that the incident did not disrupt council operations or ongoing projects.
The incident highlights the growing threat of sophisticated fraud targeting local governments, and the increasing use of artificial intelligence in criminal activity. Noosa Council’s response underscores the importance of robust financial controls and proactive cybersecurity measures in the public sector.
(ABC Sunshine Coast: Owen Jacques) – Image accompanying the original report shows a general view of Noosa Council.
