BREAKING: Noosa Council has just revealed it lost $2.3 million to a sophisticated international crime syndicate employing advanced “social engineering AI techniques.” This shocking announcement comes nearly ten months after the fraud took place in December 2024, prompting urgent investigations by local and federal authorities.
The council, located just north of Brisbane, initially withheld details from ratepayers, raising concerns over transparency. Council CEO and former basketball star Larry Sengstock confirmed that while about $400,000 has been recovered, the total loss stands at a staggering $1.9 million.
URGENT ALERT: Authorities warn that such highly organized cyber fraud is becoming increasingly common. “The criminals used sophisticated social engineering AI techniques. However, we cannot disclose specific details to protect our staff and avoid aiding the criminals,” Sengstock stated. He emphasized that this was not a typical cyber security breach, asserting that “no council systems were compromised, no data was stolen, and public services remained uninterrupted.”
The Australian Federal Police (AFP) are actively investigating the case along with Interpol, following instructions to keep the scam details under wraps to avoid jeopardizing the ongoing probe. Sengstock expressed regret on behalf of the council, saying, “We take our financial responsibility very seriously. This incident serves as a stark warning about the rise of scams targeting organizations.”
The timing of this revelation coincides with the release of the Australian Signals Directorate‘s annual cyber threat report, which shows that while overall reports of cybercrime may have decreased, the financial impact on businesses has skyrocketed. The average cost of cybercrime for large businesses surged to $202,700 last fiscal year, marking a staggering 219 percent increase.
As investigations continue, ratepayers are left with questions about the council’s oversight and future safeguards against such incidents. Authorities recommend that all organizations, including local councils, constantly review their fraud prevention measures to mitigate risks.
WHAT’S NEXT: As the situation develops, the council will continue to cooperate with investigations from both the AFP and the Queensland Audit Office. Residents are urged to remain vigilant against scams as these incidents highlight the pressing need for robust security measures.
Stay tuned for further updates on this urgent story as more information becomes available.
