Summary：**Cognizant Under Fire as US Starts Visa Fraud Probe** *International Business News – Bengaluru*

referrerpolicy="no-referrer"
style="max-width:100%;height:auto;display:block;margin:0 auto;">

**Cognizant Under Fire as US Starts Visa Fraud Probe**
*International Business News – Bengaluru*

**Introduction**
The United States Department of Labor (DOL) has opened a formal investigation into alleged irregularities in the H‑1B and PERM employment‑visa programs that involve Cognizant Technology Solutions. The move follows whistle‑blower claims that the Indian IT services giant may have submitted inaccurate labor‑condition applications and misrepresented job duties to secure foreign‑national workers. While Cognizant has not been charged, the probe adds to growing scrutiny of how major outsourcing firms navigate U.S. immigration rules.

**Key Developments**
DOL officials confirmed the inquiry after receiving a complaint alleging that Cognizant filed PERM labor certifications for positions that did not match the actual work performed by H‑1B holders. The agency said it will review a sample of applications submitted over the past three years, focusing on wage levels, job descriptions, and employer‑employee relationships. In response, Cognizant issued a brief statement emphasizing its commitment to compliance and saying it will cooperate fully with investigators. The announcement triggered a modest dip in the company’s stock price and reignited debate over visa‑program integrity in the tech sector.

**Industry Analysis**
Analysts note that the investigation reflects a broader shift in U.S. immigration enforcement. Over the last two years, the DOL and U.S. Citizenship and Immigration Services have increased audits of H‑1B sponsors, particularly targeting firms that rely heavily on foreign talent for offshore delivery models. For Cognizant, which derives a significant portion of its revenue from U.S. contracts, any finding of non‑compliance could lead to fines, restrictions on future visa petitions, or mandatory remediation plans. Industry peers such as Infosys and Wipro have already tightened internal controls after similar inquiries, suggesting that the sector may be moving toward stricter self‑policing to avoid regulatory penalties.

**Future Outlook**
If the DOL uncovers systematic violations, Cognizant may face a temporary suspension of its ability to file new H‑1B petitions—a scenario that could disrupt project staffing and increase reliance on domestic hiring or alternative visa