US Opens H-1B Fraud Investigation, Says Cognizant among Companies Being Examined

Moneylife Digital Team 09 July 2026

Economy & Nation

The US has launched a sweeping investigation into alleged fraud involving the H-1B and program electronic review management (PERM) employment-based visa programmes, with federal authorities saying Indian IT company Cognizant is among the companies whose names have surfaced during the ongoing probe. The announcement comes amid heightened scrutiny of employment-based visa programmes in the US, particularly the H-1B system widely used by technology companies to hire highly skilled foreign professionals, including thousands from India.

Announcing the action, the US department of labour's office of inspector general (OIG) said it has intensified enforcement efforts against fraud and human trafficking linked to the H-1B and PERM systems after uncovering widespread abuse involving employers and labour brokers.

According to the OIG, investigators have identified schemes in which employers and labour brokers allegedly submitted fraudulent visa applications, exploited foreign workers through coercive wage-kickback arrangements and undercut American workers by flooding the labour market with below-wage workers.

The investigation is being conducted alongside federal law enforcement agencies and the fraud task force established under president Donald Trump and vice-president JD Vance.

Speaking to fox Business on Wednesday, US department of labour IG Anthony P D'Esposito said investigators had already issued dozens of subpoenas and were pursuing every available lead.

"We have already started to issue dozens of subpoenas; we are going to make sure that we track down every lead. We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of... in the chatter of issues with PERM and H-1B visas," Mr D'Esposito said.

He did not allege wrongdoing by Cognizant or say that the company had been charged with any offence. The investigation remains ongoing.

Foreign labor fraud steals jobs from American's, fuels crime, creates dangerous worksites, and enables human trafficking.@POTUS and @VP’s @WHFraudTF will not tolerate it. @DOLOIG launched an aggressive visa fraud investigation and will work w/@Sonderling47 to protect workers. pic.twitter.com/DxbtKq50mf
— Inspector General Anthony D'Esposito (@USLaborIG) July 8, 2026

In its release, OIG said the alleged abuses extend beyond immigration fraud and include exploitation of vulnerable foreign workers through forced labour practices and human trafficking.

The office said such activities undermine labour programmes intended to address genuine shortages of skilled workers while adversely affecting employment opportunities for American workers.

"This isn't just paperwork fraud—it is the exploitation of vulnerable workers, forced labour, the displacement of American workers and abusive human trafficking," Mr D'Esposito said.

"My top priorities are exposing fraud, protecting American workers, and putting criminals in cuffs," he added.

As part of the enforcement drive, the OIG has launched a nationwide public awareness campaign encouraging American workers who believe they have been displaced by H-1B or PERM fraud to come forward.

It has also appealed to foreign workers who have experienced exploitation, coercion, wage kickbacks, benching, fraudulent recruitment practices or other forms of abuse to confidentially report their experiences.

The agency further urged anyone with information relating to falsified employment-based visa applications, visa programme abuse or forced labour to contact its hotline. It said cash rewards or other benefits may be available for information leading to successful prosecution of individuals or companies involved in fraud.

OIG said protecting workers and preserving the integrity of the H-1B and PERM programmes remain central to its mission and pledged to dismantle networks involved in visa fraud, forced labour and human trafficking.

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