Swapna Kumbar , Bengaluru - The U.S. government has launched a major investigation into alleged H-1B and PERM visa fraud, with Cognizant among the companies being scrutinized. The probe is being carried out under the administration’s anti-fraud push led by Vice President JD Vance.

According to reports, the Labor Department’s Office of Inspector General has already issued multiple subpoenas as investigators examine suspected labor trafficking, wage-kickback schemes and abuse of foreign worker programs. A senior official said whistleblowers had raised concerns about some of the country’s biggest firms, including Cognizant, and that investigators are working with the president and vice president’s fraud task force. The administration says the goal is to crack down on employers and labor brokers who may have filed fraudulent applications or exploited workers through coercive arrangements.

The H-1B and PERM programs have long been under scrutiny because they can be used improperly to undercut wages or sidestep recruitment rules for U.S. workers. USCIS says it already conducts site visits and investigations to deter fraud and abuse, and that targeted checks focus on employers where violations may be more likely. This new probe appears to widen that effort into a more aggressive, administration-wide enforcement push.

The investigation could have major consequences for employers that rely heavily on foreign labor and sponsorship-based hiring. It also signals that H-1B and PERM compliance is becoming an even bigger enforcement priority in the U.S.