The council says “human error” has cost ratepayers millions through AI fraud

A Queensland councilor says an internal investigation has found human error contributed to taxpayers being defrauded of $2.3 million.

Noosa City Council initially said no staff were to blame when overseas fraudsters posed as suppliers to the council in December last year and refused to provide details of the theft.

But a report to the council, due to be considered on Thursday, said investigations had found “elements of human error that contributed to some failures in our internal controls”.

The report, which Mayor Frank Wilkie and Deputy Mayor Brian Stockwell voted against releasing, said three “key lessons” could have prevented the fraud.

This included adhering to council guidelines when changing a supplier’s details, checking emails and forwarding bank inquiries to senior staff.

Details of the nature of the fraud are expected to be included in a Queensland Audit Office (QAO) report early next year.