Wounded soldiers seeking compensation for their injuries are being secretly filmed to check whether they are lying about their condition.

The Ministry of Defence has ordered its legal teams to make use of ‘Big Brother’ undercover spying powers originally drawn up to deal with counter-terrorism.

All injured servicemen and women claiming compensation from the MoD have been sent letters via their solicitors threatening them with ‘covert surveillance’.

They are warned that their case will be ‘passed to the MoD police’ to consider prosecution if there is suspicion of fraud.

Yesterday the ministry confirmed that since 2000 it had carried out such surveillance on almost 300 injured personnel who sought damages through the civil courts.

The disclosure sparked astonishment and outrage.

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