Insurers compiling data on suspected fraudsters have been warned that they could be in contravention of the Data Protection Act.

Law firm Davies Lavery told insurers at a recent fraud seminar that prosecutions for obtaining personal data unlawfully were increasing.

Davies Lavery associate Irfan Baluch said: "People in the DVLA and police forces are being prosecuted for giving out personal data."

He said companies were also being investigated for breaches of the Act.