An Iranian couple were arrested for allegedly scamming an Israeli tourist in Thailand.

Ahmadi Fiouj Hooshang, 49, and his wife Mahmodi Kiya Ameneh, 42, reportedly tricked the Israeli man into 'showing them his US dollars' before stealing his wallet at the Twin Palms Resort in depraved coastal town Pattaya.

The alleged victim eagerly showed off 700 USD of the foreign currency.

However, he filed a report with police on April 24 after realising his wallet was missing.

Authorities launched an investigation and tracked down the couple in a hotel in the Jomtien area on April 28.

In a search of the hotel room, cops found a wad of cash with the serial numbers matching those of the missing banknotes. They also discovered the clothes the suspects were wearing when the alleged theft was carried out.

The couple were detained at the Pattaya City Police Station to face charges of 'theft by night'.

Police Lieutenant Colonel Torlarp Tinamat of the Tourist Police said: ‘The suspects denied all charges. They claimed that they only exchanged money with the tourist.

‘We did not believe their statement. We have detained them and handed them over to the inquiry officer.

‘They will be charged with committing theft by night or receiving stolen property, and will face further legal action.'

Former fishing village Pattaya became popular with American troops on 'rest and relaxation' breaks in the 1950s and 1960s when the U.S. military had bases in Thailand while fighting Communism in Vietnam. Rural families are said to have even dressed their sons as women to cash in on the gold rush.

The handful of bars in the coastal town quickly grew and it is now the world's biggest sex holiday destination, with round-the-clock prostitution and drugs - a modern-day Sodom and Gomorrah rife with crime and debauchery.

Government chiefs have attempted to clean up the city but regular violence, depravity and claims of corruption continue to blight its reputation.