UPDATE: Noosa Council has just revealed a staggering $2.3 million loss to an international crime syndicate using advanced “social engineering AI techniques.” The shocking announcement comes nearly ten months after the fraud occurred in December 2024, prompting urgent investigations by both local and federal authorities.
The council, situated north of Brisbane, has faced criticism for keeping ratepayers uninformed about this sophisticated cyber fraud. According to council CEO and former basketball star Larry Sengstock, approximately $400,000 has been recovered so far, leaving a total loss of $1.9 million still unaccounted for.
In a statement, Sengstock emphasized that the criminals executed a “sophisticated, strategic, and targeted” fraud. However, he clarified that it was not a cybersecurity breach and assured the public that no council staff were complicit in the scam. “Council systems were not breached or affected, no data was stolen, and there was no impact on the public or our services,” he stated.
The Australian Federal Police (AFP) has intervened, advising the council to maintain confidentiality to protect ongoing investigations. The fraud has been reported to the Queensland Audit Office and relevant ministers, and is currently under investigation by federal police and Interpol.
Sengstock expressed regret over the incident, stating, “Council takes its financial responsibility very seriously and on behalf of management, I am sorry that this has happened.” He noted the rising prevalence of scams, urging organizations to continuously review their procedures to safeguard against such threats.
In an alarming context, the latest annual cyber threat report from the Australian Signals Directorate indicates that while overall reports of cybercrime have decreased, the financial impact on businesses has surged. The average cost of cybercrime to large organizations has skyrocketed to $202,700, marking an astounding increase of 219 percent from the previous year.
As investigations continue, this incident serves as a stark reminder for organizations everywhere to remain vigilant against evolving cyber threats. The Noosa Council is under pressure to improve transparency and communication with ratepayers as they navigate the fallout from this sophisticated fraud.
Stay tuned for further updates on this developing story.
