In a significant move that could have far-reaching implications for thousands of Indian professionals and technology companies, the United States has launched a major investigation into alleged fraud and human trafficking linked to the H-1B work visa programme and the employment-based permanent residency (PERM) system.Announcing the nationwide crackdown on Wednesday, the US Department of Labor’s Office of Inspector General (OIG) said it had uncovered widespread schemes involving fraudulent H-1B and PERM applications, coercive wage kickback arrangements, forced-labour practices and the exploitation of foreign workers.The investigation is being conducted in coordination with federal law enforcement agencies and the Trump Administration’s Task Force to Eliminate Fraud.The OIG alleged that some employers and labour brokers had manipulated the visa system by submitting fraudulent applications, underpaying foreign workers and using them to displace American employees.Calling it one of the most aggressive investigations into employment-based visa fraud, US Labor Inspector General Anthony P. D’Esposito said his office had already issued dozens of subpoenas and would pursue every lead.”Without a doubt, we are going to take what we believe is probably the most aggressive action against foreign labour fraud by an Inspector General in this administration. We’ve already started to issue dozens of subpoenas. We are going to make sure that we track down every lead,” D’Esposito said.He added that whistle-blowers had raised concerns involving “some of the biggest companies, like Cognizant,” in connection with alleged issues relating to PERM and H-1B visas. D’Esposito did not accuse cognizant of wrongdoing but said investigators would examine every lead alongside the President and Vice President’s Fraud Task Force.Drawing on his experience as a former New York Police Department detective, D’Esposito said his investigators and auditors would be provided every resource required to pursue the inquiry. He also alleged that fraud involving foreign labour programmes was often linked to organised crime, saying human trafficking connected to employment visas was tied to cartels and transnational gangs.”This isn’t just paperwork fraud—it’s the exploitation of vulnerable workers, forced labour, the displacement of American workers and abusive human trafficking,” he said.The watchdog has appealed to US workers who believe they were displaced because of H-1B or PERM fraud, as well as foreign workers who experienced exploitation, “benching”, fraudulent recruitment or coercion, to report complaints through its confidential hotline. It also said rewards could be offered to whistle-blowers whose information leads to successful prosecution of individuals or companies involved in visa fraud.The H-1B visa programme is of particular importance to India, whose nationals account for the overwhelming majority of H-1B beneficiaries in the United States. Indian IT services companies are among the largest users of the programme, while thousands of Indian engineers, software professionals, researchers and healthcare workers rely on H-1B visas to work in the US.The investigation comes amid a broader tightening of US immigration and employment policies under President Donald Trump, whose administration has repeatedly argued that employment-based visa programmes must serve genuine labour shortages rather than become instruments for wage suppression or worker exploitation.While the announcement does not introduce any immediate changes to H-1B rules or visa eligibility, immigration experts expect heightened scrutiny of employers, labour contractors and recruitment practices.Companies sponsoring foreign workers are also likely to face increased compliance checks as investigators examine allegations of fraudulent filings and labour law violations.The Department of Labor has vowed to dismantle criminal networks abusing the employment-based visa system.