POLICE are warning people to be on their guard for phone scammers this Christmas after a spate of fake calls relating to payment protection insurance.

Cambridgeshire residents have been contacted by someone claiming to be from Ukash, a legitimate cash transfer company.

They were asked if they had taken out a loan and then told they had been mis-sold payment protection insurance and were owed thousands of pounds. They simply had to send an “admin fee” to the caller in order to receive a cheque through the post.

The victims were asked to pay the fee through Ukash by purchasing a voucher from a cash machine and then providing the code issued over the phone.

Det Sgt Nick Cook said: “These people appear to be operating nationwide and target the elderly.

“Victims have been coerced into sending numerous payments to the offenders via Ukash vouchers bought at cash machines.

“Codes have then been passed to and cashed by the offenders and some victims have lost up to �2500.

“The promised payment has never been made to the victim’s bank account or a cheque has never materialised.

“We would urge people never to pay money to people who cold call in this way.”