A nursery worker was known by officials to have a "special relationship" with a child he raped but the warning was ignored.
Warning signs that might have prevented a predatory paedophile raping a child at the nursery where he worked were ignored, a serious case review has found.
He had been able to take "advantage of weaknesses in the system," Jane Held, independent chair of the Birmingham Safeguarding Children Board (BSCB) said in a statement.
"The review found that it was known by the nursery, Ofsted and the local authority that Wilson had a 'special relationship' with [a] child which should have raised the alarm and been examined in more detail," said Ms Held.
The review stated that authorities had been alerted that Wilson was rumoured to be taking children to the lavatory with him at the nursery, but had failed to act.
"Students on a local child care course also commented to their college tutor that they had heard of a male member of staff at the nursery who had been taking children into the adult toilet on his own and sitting them on his lap.
"The complaints by the students were passed to the Local Authority Designated Officer team," it said, adding that no further action was taken.
Wilson took children to the toilet with him at the Little Stars nursery
Ms Held said: "The lack of supervision of the perpetrator, failure to understand the risks of 'special relationships' with individual children, the layout of the nursery and the weak safeguarding practice within the setting combined to create an environment where the external factors that might have deterred the perpetrator from abusing the child were missing.
"The local authority did not communicate to the relevant agencies and investigate when the initial child protection concerns were raised. In addition there was a failure by Ofsted and the local authority to properly investigate concerns and a lack of rigour and depth to the nursery inspection process."
Wilson, from Birmingham, worked at the Little Stars nursery.
Outside of work, he befriended young girls online, often posing as a child, and encouraged them to expose themselves on a webcam.
Subsequently, he would use the images to blackmail the children into carrying out sex acts.
"He told the review that within 10 minutes online he could find someone who would do what he wanted them to do and that social networking sites were 'like eBay for teenagers'," the review said.
At the time of his sentencing, he was described as "a very, very dangerous individual," by Detective Inspector Kay Wallace of West Midlands Police who led the investigation into his activities.
The Serious Case Review has made eight key recommendations.
Ms Held said: "Parents should be able to trust the people they leave their children with to ensure that children are properly protected. In this case there were unfortunately a number of weaknesses in the way that nursery was run and a number of opportunities to intervene earlier and prevent the continuation of abuse which were missed."
