West Lindsey District Council has stressed that the letters have nothing to do with the authority.
Director of Strategy and Regeneration, Mrs. Rachel North, said:
"We are extremely concerned letters claiming to be from the council are being circulated but we would like to reassure residents that this is a scam.
"We are working closely with Lincolnshire Police on this issue. West Lindsey District Council will not tolerate this kind of behaviour and will not hesitate to prosecute those involved.
"We would urge anyone who received a letter or knows where they originated from to contact us or the police with information."