A new active infrared thermography based technique is proposed for defect detection in ferromagnetic specimens using low frequency alternating magnetic field induced heating. The test specimens (four mild steel specimens with artificially made rectangular slots of 8.0, 5.0, 3.3 and 3.0 mm depths) are magnetized using the low frequency alternating magnetic field and using an infrared camera the surface temperature is remotely monitored in real time. The alternating magnetic field induces eddy current in the specimens which increases the specimen temperature due to Joule’s heating. The experimental results show a thermal contrast in the defective region that decays exponentially with defect depth. The observed thermal contrast is attributed to the reduction in induction heating due to the leakage of magnetic flux caused by magnetic permeability gradient in the defective region. The proposed technique is suitable for rapid non-contact wide area inspection of ferromagnetic materials and offers several advantages over the conventional active thermography techniques like fast direct heating, no frequency optimization, no dependence on the surface absorption coefficient and penetration depth.