Police say it began last month when members of the public received a call from a man who said they owed back taxes and would be arrested if they didn't pay immediately.
The faux tax man had some of the victims' personal information, including their name, address and bank account details.
They were instructed to pay the debt with prepaid credit cards or through a money transfer service, and were kept on the phone until the transaction was complete.
Police say 35 victims were identified in 2014 and defrauded of a total of $60,000.
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