In October 2025, Queensland’s Noosa Council confirmed it had lost $1.9 million in a highly convincing scam.
The criminals used AI-driven social engineering to impersonate legitimate contacts and trick staff into authorising fraudulent payments.
While details remain under investigation, this incident is a stark reminder: Australian Councils are prime targets for financial fraud.
AI Has Supercharged Scams
It’s not just phishing emails anymore.
Today’s scammers use artificial intelligence to mimic writing styles, voices, and even identities with alarming accuracy.
They might:
- Pose as a supplier sending a “new” invoice or payment details
- Send a fake email from a senior official requesting urgent approval
- Use cloned voices to follow up by phone and add credibility
Even with good internal controls, a single human error can open the door to a costly loss.
Why Councils Are Vulnerable
Local governments process thousands of invoices each year – many from one-off suppliers or contractors.
When invoices arrive as PDFs or email attachments, they’re vulnerable to interception, alteration, or impersonation.
Scammers know this, and they exploit it.
How eInvoicing Reduces This Risk
eInvoicing eliminates the weak link – email.
With eInvoicing, invoices are sent directly from one accounting system to another via the secure Peppol network.
That means:
- Only verified suppliers can send you invoices
- No attachments or email links to manipulate
- Data is transferred securely and instantly
- No chance for invoice tampering or redirection
For Councils, it’s a simple and effective way to protect ratepayer funds while improving efficiency.
Devonport City Council: A Success Story
Devonport City Council in Tasmania is one of many Australian Councils already benefiting from eInvoicing.
By connecting Link4 to their TechnologyOne system, Devonport:
- Streamlined invoice processing
- Reduced manual data entry
- Gained confidence in the authenticity of supplier invoices
Their experience shows that secure and efficient invoicing is not just possible – it’s happening now across the local government sector.
A Timely Reminder
As the Noosa case demonstrates, even strong internal processes can be bypassed by organised criminals.
Now is the time for Councils to review their payment processes and take advantage of secure solutions already available.
Don’t wait for a scam to act.
Join the Australian Peppol eInvoicing network and protect your Council’s funds.
Learn how easy it is to get started with eInvoicing for your Council.
To learn more, [Book a free demo] or [Read the Devonport Case Study]
Kithmini Kuruppuarachchi
Global Marketing Manager, Link4
[email protected]
