TechnologyOne launches InvoiceIQ to curb council fraud

TechnologyOne has launched InvoiceIQ for local councils in Australia to help detect suspected invoice fraud and business email compromise before payments are made.

The release follows recent cases in Queensland in which councils lost millions after staff were tricked into changing supplier details and processing false invoices.

Built into council finance workflows, InvoiceIQ is designed to identify unusual changes to supplier or invoice information. When it detects an anomaly, it flags the payment for finance teams to review before money leaves the organisation.

Business email compromise scams are a growing concern for public sector finance teams, particularly when attackers impersonate trusted suppliers or alter payment details. In the council cases cited by TechnologyOne, fraudsters deceived staff into updating legitimate supplier records before issuing fraudulent invoices.

The safeguards are included in TechnologyOne's latest major software release and are available to customers. The company describes the tool as an optional layer of protection embedded in accounts payable processes.

Fraud Checks

The system uses anomaly detection based on patterns learned from previous transactions. Rather than applying checks at every step, it is designed to intervene when key invoice or supplier details change.

That approach reflects a wider shift in finance software towards targeted controls that aim to catch suspicious activity without delaying routine work. Local authorities are under pressure to tighten payment controls as cyber criminals increasingly use social engineering and AI-assisted methods to make fraudulent requests appear legitimate.

Chandan Potukuchi, chief technology officer at TechnologyOne, said: "Our solution adds automated, intelligence-driven protections to the financial processes that accounts payable teams rely on, helping keep them efficient and more resilient against cyber threats."

He said the move reflects changes in the threat landscape facing finance departments. "Cyber criminals now have more powerful tools, thanks to the misuse of AI, but these examples still prey on human frailty and gaps in email security, taking advantage of time-poor people doing critical jobs. So we've acted to turn the tables by building additional optional security and safeguards functionality."

Council Exposure

Australian local governments manage large volumes of supplier payments across services, infrastructure and procurement, making accounts payable teams a frequent target for invoice fraud. In these attacks, criminals commonly use compromised email accounts or spoofed addresses to request changes to banking details linked to genuine suppliers.

Because the requests can appear to come from known contacts, the scams often exploit routine administrative processes rather than technical weaknesses alone. This has increased demand for checks within core finance systems, where suspicious edits can be detected at the point of payment approval.

TechnologyOne said the tool was created specifically for local government customers and is aimed at protecting ratepayers' funds, a politically sensitive issue for councils under scrutiny over public money and internal controls.

"Cybercriminals are evolving fast, and so are we," Potukuchi said.

TechnologyOne said the software is intended to reduce accounts payable fraud risk, strengthen protection against business email compromise and invoice manipulation, and support compliance through automated checks. The measures come as councils and other public bodies review how to defend finance teams against scams that combine impersonation tactics with increasingly convincing digital tools.

Potukuchi said the issue goes beyond software updates. "Protecting our customers and ratepayers' money is our highest priority. With the rise in cyber fraud attempts, TechnologyOne's latest advancement gives councils confidence that their funds and community are protected. It's a proactive step to safeguard financial integrity in today's challenging climate."

He added: "This is more than a software upgrade - it's a security evolution for finance teams. We're committed to continuous innovation so councils and organisations can do more, securely and confidently. This is about protecting ratepayers' money and strengthening trust. Homegrown technology to keep councils safe, communities secure, and Australian data at home."