Telford & Wrekin Council said not to reply or hand over any personal details if they receive the email.
The message, which is from "Council Tax Services", looks like an official email from gov.uk.
It says: "We would like to notify you that you stilll have an outstanding council tax refund from an overpayment.
"You can get you refund fast, straight into your bank account.
"If you claim online you could receive your refund within three to five days."
The email also include an expiration date, trying to get people to act quickly to avoid missing their money.
Telford & Wrekin Council tweeted: "If you get an email message like this, don't click on the link, don't reply and certainly don't give any details."