Some 4,300 fraudulent travel insurance claims were detected in 2008, worth approximately £5 million, it has been revealed.

According to the Association of British Insurers (ABI), the number of fraudulent insurance claims has risen to a record level, with 2,000 identified across all sectors every week.

The trade body's research indicated that 20 per cent of people are still willing to cheat on claims for products such as holiday insurance, despite the risk of being caught.

One of the most notable cases of fraud highlighted by the ABI involved "recovery expenses" claimed by a man following an illness in West Africa, which turned out to be "services" at a local brothel.

The association's Nick Starling warned: "Cheating on your insurance really does not pay - you will get caught, future insurance will be more expensive and, along with credit, harder to obtain.

"The only thing you are likely to gain is a criminal record."