H-1B visas program is susceptible to and has experienced significant fraud and abuse. Investigations by government agencies and independent reports have revealed various schemes, particularly involving unscrupulous staffing firms that exploit the high demand and limited supply of visas.
Methods of H-1B visa fraud
Multiple registrations in the lottery: Until new rules were implemented in 2024, staffing companies created shell companies to submit multiple entries for the same individual, artificially boosting their chances of being selected. In 2023, approximately one in six visas awarded were obtained by this method. The new rules changed the lottery selection to a “per-beneficiary” process to prevent this.
Fake job offers: Some companies submit petitions for non-existent jobs to secure visas. They may even pay other companies to pretend they are hiring the foreign workers. This allows them to “bench” the visa holders and later place them with real employers for a fee.
Fabricated documents: Individuals or companies may submit fraudulent educational degrees, experience letters, or fake employment contracts to meet visa requirements.
Lying about job details: Fraudulent petitions can misrepresent key information about the position, including the job duties, salary, or work location.
Underpaying workers: While not always outright fraud, employers sometimes fail to pay the wage certified on the visa application. They may also illegally deduct attorney fees or other costs from the worker’s pay.
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Government actions against fraud
U.S. Citizenship and Immigration Services (USCIS) and other federal agencies have implemented and increased enforcement measures to detect and prevent fraud. These actions include:
Stricter lottery rules: In 2024, USCIS changed the lottery system to select based on unique beneficiaries rather than registrations. This significantly reduced the incentive for companies to file multiple petitions.
Increased investigations: The USCIS Office of Fraud Detection and National Security (FDNS) conducts site visits and audits of petitioning employers to verify the legitimacy of their business and the accuracy of their filings.
Stiff penalties: Companies and individuals found guilty of visa fraud face severe consequences, including criminal prosecution, large fines, prison time, and being banned from future immigration petitions.
Impact of fraud on the H-1B program
Unfair lottery: Fraudulent registrations unfairly reduce the odds for legitimate applicants and their employers, as the small number of available visas is overwhelmed by fraudulent entries.
Undermining program integrity: Widespread fraud undermines the public’s trust in the H-1B system, which is intended to fill specialized skill gaps when U.S. workers are not available.
Harm to workers: Visa holders can be exploited, underpaid, or benched by companies that commit fraud.
Distorted demand: Fraud creates a distorted view of the program’s actual demand, leading to long-term systemic problems.