The man only realised he had been defrauded when he went to Tamworth police earlier this month, who alerted him to the scam.

Police confirmed the man, who does not wish to be identified, received a phone call about 11.30am with an automated message purporting to be from the Australian Tax Office (ATO).

Multiple calls followed, warning the man would be arrested and fined if he did not transfer a "large sum of funds" that were outstanding.

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As a result of the sustained warnings on calls, the man transferred the funds.

A short time later, he went to Tamworth Police Station where officers confirmed it was a fraud.

Police have been investigating the incident, but have issued a public warning to ensure more locals don't fall victim.

It's the latest in a series of reports to officers after multiple phone scams.

Senior police confirmed elderly and vulnerable locals were being easily targeted in the frauds with scammers claiming to be from the ATO, banks and Telstra.

The rise in reports has included a pre-recorded message with the scam advising the victim they have an urgent bill that must be paid, or an outstanding debt, and in some cases an arrest warrant has been issued.

Oxley police said locals should never give out payment details, personal details or transfer funds over the phone.

Officers are urging residents to hang up on the scam, and if they're concerned, contact the company or government department directly.

Anyone who believes they maybe have been scammed is urged to contact Oxley police on 6768 2999.

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