The advice charity says local bureaux around the country are seeing more victims of supernatural fraud.
In one case in the north east, a clairvoyant demanded an elderly man pay him money to atone for debts he owed from a previous life. Another CAB client from Yorkshire received a letter from a Swiss psychic warning that something bad would happen to her family unless she paid a fee. She has had nightmares as a result.
But in many cases, the scam simply involves selling an astrology reading that never materialises.
Citizens Advice says the phoney psychics are exploiting people, luring them with the promise of a life-changing solution.
"These are despicable scams," said Susan Marks, consumer affairs social policy officer at Citizens Advice. "These villains operate by trying to catch people off guard and playing on their deepest fears."
Citizens Advice is publicising the fraud to coincide with the Office of Fair Trading's Scams Awareness Month.