Noosa Council CEO Larry Sengstock has revealed more details about the major fraud incident that saw an initial $2.3 million stolen from Council during the 2024 Christmas period. The theft, carried out by international criminal gangs using advanced social engineering and artificial intelligence techniques, remains under investigation by the Australian Federal Police and Interpol.
Larry said the criminals’ tactics were “highly sophisticated, strategic and targeted” and confirmed that no council staff were at fault. “Police say that these types of incidents are on the rise and should act as a warning for organisations to continually review their procedures,” he said.
Council first learned of the crime not through its own systems, but from the authorities. “We were alerted by the police that the incident had happened,” Larry said. “They had already been aware of the criminal group and were monitoring their activities.”
“From there we immediately checked our systems and our processes and to make sure that we hadn’t been breached from a cyber perspective. It was a separate process incident, not a cyber-security attack.”
The theft was not a slow or ongoing loss, but rather one big hit that occurred in December. “Once we were aware we had been attacked, we checked they hadn’t taken personal information from our residents and community, because that’s sort of the normal thing these days – criminals going in to steal data so that they can use people’s information, but it was purely a financial hit,” he said. “[The] attack … utilised unidentified vulnerabilities in our process, and unfortunately, that theft was the result.”
Council was instructed to remain silent during the early stages of the investigation to avoid compromising police efforts. “They basically gave us the direction to keep it quiet, let them do their investigation,” Larry said. “We also alerted the government, the minister’s office and the Queensland Audit Office within the statutory timeframes. Once we were cleared to make it public, we did so.”
The total loss after partial recovery stands at about $1.9 million. “Initially it was $2.3 million but the bank was able to recover $400,000,” Larry said. “We’re still working with insurers to see what potential there is for some recovery there as well.” He said police had been monitoring the same criminal syndicate prior to the incident and investigations were ongoing internationally. “We were in that mode as well – to give them every opportunity to try to recover what they could without making it too public,” he said. “The risk of going public too early was also that there could be copycats.”
While Noosa Council was the main victim locally, Larry said there was no evidence that residents or local businesses were directly targeted in the same way. However, he warned that no one is immune to the rising tide of digital deception.
“We’re all vulnerable, in our personal lives and business lives,” he said. “Once you get into this world a bit, it’s amazing the stories that come out from individuals.”
He said council faces regular attempted cyberattacks but has strong systems in place to protect against them. “Because we’re in local government, we’re getting attacked on a regular basis,” he said. “We’ve got very strong systems that protect us, but staying ahead is the battle.”
Larry urged residents to take the incident as a reminder to be vigilant, particularly less tech-savvy users. “Our message really is to say you just need to be so vigilant. You might think you’ve got all your processes and security in place, but just make sure you don’t get complacent,” he said. “We’re all vulnerable, in our personal lives and our business lives, in all sorts of things. If you think something’s a bit dodgy, check and double check, triple check. Even when you think you’re safe, the criminals are always looking for new ways in.”
He said similar incidents had occurred at other councils across Australia. “We found out the Gold Coast had a similar attack about 18 months ago, and they’re a much bigger organisation than us,” he said. “It’s the world we live in right now; we’ve got to be so vigilant.”
Despite the financial hit, Larry reassured the community that council’s operations, projects and services have not been affected. “We’re in a strong financial position,” he said. “That’s not the case for every council, but we’ve built that ourselves. We’ve had reserves in place that gave us the ability to accommodate this type of thing if we had to.
“Did it affect our decision on rates? No, it did not. Did it affect our budget or projects? No, it did not,” he said.
While the loss was significant, Larry said the experience had reinforced the importance of constant vigilance and cooperation with authorities. At the time of publication, investigations by the Australian Federal Police and Interpol were ongoing, and Noosa Council continues to work with its insurers and the Queensland Audit Office as recovery efforts progress.