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Iain Duncan Smith, Secretary of State for Work and Pensions, has visited the Benefit Fraud investigation team in Spain to thank them for their hard work and to show his continued support in bringing overseas benefit fraudsters to justice.

In a meeting at the British Embassy in Madrid, investigators explained what they are doing to tackle benefit fraud such as data sharing with the Spanish authorities, which allows them to trace suspects living in Spain. The team has investigated over 1,200 cases to date and has recovered almost £5million of UK taxpayers' money.

Iain Duncan Smith said:

“It is important that fraudulent claimants realise that even if they are living in Spain, it doesn't mean they won't be caught. Benefit fraud is a crime and we are committed to putting a stop to it whether you live in Spain, the UK or anywhere else in the world. Our investigators are here in Spain to make sure that no fraudster goes undetected.

“I would urge British residents who suspect someone of committing benefit fraud to call the hotline in Spain on 900 554 440. You can help us to ensure that UK taxpayers' money is going to those that need it most.”

More allegations of benefit fraud are received in Spain than in any other foreign country. Fraudulent claims for Pension Credit and Income Support are the most frequently investigated.

A man who left Britain to set up a catering firm in Spain is one of the latest cases to come to court. Nigel Hadley, 61, of Pembroke Dock, west Wales, has been ordered to sell his Spanish property to pay back more than £25,000 in falsely claimed benefits.

Hadley moved to Marbella after his marriage broke down in 2000 and bought a fisherman's cottage two years later. He returned to Britain in 2011 and then claimed employment support allowance from the benefit agency, as well as housing benefit and council tax benefit. In all three cases he failed to inform the authorities that he had a property in Spain, despite being asked verbally and on claim forms.

He was caught after the Department for Work and Pensions sent him a "habitual residency" claim form which specifically asked whether he had any other property. After he once more failed to reveal his foreign property, investigators discovered his Spanish home.

Hadley has been sentenced to nine months in prison, suspended for 18 months, and ordered to pay back £25,960 of claimed benefits through the sale of his £90,000 property, his only asset. He was told to repay all the money within six months or face a jail term.

If you suspect someone of committing benefit fraud you can call Benefit Fraud Hotline in Spain on 900 554 440. Lines are open 8am-4pm, Monday to Friday, and all calls are free and confidential.

Spain has topped the list of countries for benefit fraud abroad committed against UK taxpayers, new figures reveal. More than 750 cases were investigated in Spain last year by the Department for Work and Pensions.

Abroad fraud cost taxpayers an estimated £84m in 2012/13 - up 90% in the last two years. It is now the third largest type of benefit cheating and includes fraudulent claims for Pension Credit (£52m), Housing Benefit (£19m) and Income Support (£12m).

Minister for Welfare Reform, Lord Freud, said:

"Benefits are there to help those who need it and the vast majority play by the rules and would not once dream of cheating. But there is a minority who really try to take the biscuit.

"We have safeguards in place to bring these types of cases to our attention and we will make sure benefits are stopped when there is evidence of a fraud being committed."

If you suspect a benefit cheat in Spain, then you can call the Department for Work and Pensions (DWP) hotline on 900 554 440. It's free and confidential, and you could help to put a stop to taxpayers' money going to the wrong people.

New data shows where DWP investigators looked into 7,296 cases of suspected abroad fraud during 2013.

The top 5 nations involved were:

. Spain - 769 cases

. Pakistan - 628 cases

. Turkey - 298 cases

. India - 282 cases

. USA - 246 cases

Figures also reveal that DWP has investigated benefit entitlement for claimants living in countries as far apart as the Holy See, Somalia, China, and Iraq.

Abroad fraud includes claims by people leaving Great Britain after their claim starts, those failing to notify DWP before leaving the country or staying abroad for too long, and families who fail to report the death of someone living abroad permanently and receiving benefits.

The Government is increasing the use of data sharing with foreign countries including Spain in order to combat fraud. Details of claimants who have died whilst in Spain and elsewhere abroad are sent to the UK, helping the DWP to stop families or friends who are fraudulently continuing to claim pensions or benefits.

Richard West, Head of DWP's counter-fraud teams said:

"Cases range from people hiding foreign assets and homes to those moving abroad, either temporarily or permanently, at the taxpayers' expense.

"Benefit cheats need to know that even if they are out of the country, our teams will still investigate and where necessary bring them back to the UK to face justice."

Cases referred to DWP are investigated and where an administrative penalty or criminal prosecution is appropriate, action is taken. In all cases DWP will seek to recover all the money overpaid.

Abroad Fraud has risen to £84m in 2012/13 from £55m in 2011/12 and £44m in 2010/11.