US launches fresh H-1B visa fraud probe amid crackdown on foreign labour abuse

The US has launched a major investigation into an alleged fraud involving the H-1B visa programme, with IT services company Cognizant among the firms facing scrutiny. The investigation was announced on Wednesday (July 8), with US Labour Department Inspector General Anthony D'Esposito saying that authorities were examining suspected misuse of the visa programme and its links to wider criminal activity.

“This is another example where fraud is fuelling violent crime,” D'Esposito was quoted as saying by FOX Business. He further alleged that visa-related fraud and human trafficking involving foreign labour were often connected to organised criminal networks.

“Much of the visa and the human trafficking that we see when it comes to this foreign labour is tied to cartels, is tied to transnational gangs, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again,” he said.

The H-1B visa is a non-immigrant work visa that allows US employers to recruit highly skilled foreign professionals for specialised occupations. It is initially issued for three years and can be extended for up to six years.

The programme is widely used by the technology industry, which accounts for an estimated 60 to 70 per cent of all new H-1B visa applications in recent years. Other major users include consulting and professional services firms, engineering and manufacturing companies, healthcare and medical research institutions, and higher education organisations.

Authorities have not yet disclosed the full scope of the investigation or announced any charges. The probe is expected to examine whether companies complied with regulations governing the recruitment and employment of foreign workers under the H-1B programme.