The scam occurred on Sunday and Chifley Police District officers said it started with a phone call.

"There was a report of a telephone call to a local resident from the ATO Canberra stating the victim would be arrested if they did not buy $1500 worth of iTunes and Google Play cards," police said.

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"The victim, fearing for her safety, did as she was told to do."

Chifley police said every year scams cost Australians millions of dollars and cause considerable financial pain.

"At this time of year there is always an increase in taxation scams," they said.

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"There is a plethora of information on the Scamwatch website as there are thousands of different scams operating, including COVID and online scamming.

"The ACCC [Australian Competition and Consumer Commission] has a large amount of helpful information on their website."

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Officers have urged people not to give out any private information online or over the phone.

Please report any scams to Crime Stoppers on 1800 333 000 or to your local police.