Cognizant Targeted in Trump H-1B Fraud Crackdown: India IT Model Under Scrutiny

The Trump administration has intensified its crackdown on H-1B visa fraud, with Cognizant Technology Solutions emerging as a primary target under Project Firewall. The initiative focuses on companies that rely heavily on the offshore-onshore staffing model common among Indian IT firms.

Federal investigators are scrutinizing Cognizant’s use of H-1B visas, alleging that the company may have circumvented visa rules to place foreign workers at client sites. The probe reflects broader concerns about whether firms are misusing the program to replace U.S. workers with lower-paid foreign labor.

Project Firewall, launched by U.S. Immigration and Customs Enforcement, aims to identify and prosecute H-1B fraud. Cognizant, one of the largest users of the visa program, has faced multiple lawsuits and whistleblower complaints over its hiring practices.

The crackdown has put the Indian IT industry on notice, as companies like Cognizant, Infosys, and Tata Consultancy Services have built their business models around the visa program. Any significant changes to H-1B rules could disrupt their operations and force a shift in staffing strategies.

Cognizant has denied any wrongdoing and stated that it complies with all visa regulations. The outcome of the investigation could set a precedent for how U.S. authorities enforce H-1B rules against major technology services firms.