The Ministry of Defence (MoD) has admitted to using surveillance techniques to check up on soldiers claiming injury compensation.
All servicemen and women seeking compensation from the government have received letters from lawyers stating that the assessment of their claims may be "undertaken covertly by surveillance".
Some 284 personnel have been subjected to scrutiny in the past nine years, according to the MoD, finding in the vast majority of these cases that claims had been exaggerated.
Defending the organisation’s position, a spokesman for the MoD said it needed to guard itself against fraudulent claims.
"If, during the process of determining liability, evidence suggests that a claim has been exaggerated, surveillance may be used to verify details," he commented.
The news follows reports that Iraqi interpreters working for the MoD are planning to sue the UK government, claiming they were not given adequate protection from harm against extremist militias.