Tourist Police worked with officers from Phuket City Police Station to bring in South African Laurie Viljoen Botha, 33, yesterday afternoon.
Mr Botha was accused of filing a false police report at the Phuket City station earlier in the day.
After being given the chance to view security camera footage from the Sino Imperial Hotel in Phuket Road, Mr Botha confessed and signed a three-page statement admitting his guilt.
He may face a jail term before being deported, investigators said.
''This is a warning to other tourists not to try insurance fraud,'' added one officer. ''Most perpetrators don't get away with it.''