US launches investigation into H-1B visa fraud, Cognizant under scrutiny
What's the story
The United States has launched a major investigation into alleged fraud in the H-1B visa program. The probe, which is being carried out by the Office of the Inspector General (OIG) under the Department of Labor, has identified several companies, including Indian IT giant Cognizant, as subjects of scrutiny. The investigation was announced on Wednesday and is part of a broader effort to eliminate fraud in labor programs.
Fraudulent practices
Dozens of subpoenas issued
The OIG has discovered widespread schemes where employers and labor brokers allegedly submitted fraudulent applications. These schemes reportedly exploited foreign workers through coercive wage-kickback arrangements and undercut American workers by flooding the market with below-wage labor. Labor Department Inspector General Anthony D'Esposito said they have already issued dozens of subpoenas in this case.
Fraud elimination effort
Task force and commitment to end human trafficking
D'Esposito also revealed that whistleblowers have come forward with information about major companies, including Cognizant, being involved in issues with the Permanent Labor Certification (PERM) and H-1B visas. The investigation is being carried out under the Task Force to Eliminate Fraud, which is led by Vice President JD Vance. The OIG has stated that this investigation reflects its unwavering commitment to dismantling human trafficking and forced-labor networks that exploit foreign guest worker visa systems.
Sector scrutiny
Broader implications for the technology sector and beyond
The technology sector is the largest user of H-1B visas, accounting for 60% to 70% of all new applications. Other major users include consulting and professional services, engineering and manufacturing, healthcare and medical research, and higher education. "These abuses undermine the integrity of Department of Labour programs designed to address genuine labour shortages - not to line the pockets of bad actors at the expense of American jobs," the OIG said in a statement.