Yes, newcastle - this one goes around regularly and someone was only asking about this yesterday.
They say they come from Microsoft and they can tell that something is the matter with your computer. a) they don't and b) they can't possibly know that.
They are after your money so reassure your village that any such calls are SCAMS, and they shouldn't give out any details to an unsolicited call like this - don't tell them your passwords or any ID numbers, or pay them any money. It's a racket.