The United States has initiated a sweeping investigation into H-1B visa fraud, with a senior official explicitly naming Indian IT services company Cognizant as a focus of the probe. The action is being carried out under the newly formed Task Force to Eliminate Fraud, which is led by Vice President J.D. Vance.
Task Force Targets Visa Abuse
The task force, established earlier this year, aims to crack down on systemic abuses in the H-1B program, which allows US companies to temporarily employ foreign workers in specialty occupations. According to a statement from the Vice President's office, the investigation targets companies that allegedly manipulate the visa system to gain an unfair advantage over American workers.
An official familiar with the matter confirmed that Cognizant is among the firms being scrutinized for potential violations, including the submission of fraudulent job offers and underpayment of wages. The probe is expected to expand to other major IT services providers.
Impact on Indian IT Sector
Cognizant, headquartered in Teaneck, New Jersey, but with significant operations in India, is one of the largest users of H-1B visas. The company has previously faced legal challenges over its visa practices. In 2020, it paid a $25 million settlement to resolve a whistleblower lawsuit alleging visa fraud.
The investigation has sent shockwaves through the Indian IT industry, which relies heavily on H-1B visas to deploy engineers and consultants to US client sites. Industry body NASSCOM expressed concern, urging the US to ensure the probe does not unfairly target legitimate businesses.
Broader Enforcement Efforts
The task force, led by Vice President Vance, represents a more aggressive enforcement posture by the Trump administration. Vance has stated that the H-1B program must serve American workers first. “We will not tolerate fraud that undercuts American wages and job opportunities,” Vance said in a recent speech.
US Citizenship and Immigration Services (USCIS) has been directed to increase site visits and audits of H-1B employers. The investigation is part of a broader effort to reform the visa program, which has been criticized for allowing companies to replace US workers with cheaper foreign labor.
