H-1B visa scam: Indian-origin US diplomat warns of widespread fraud, urges pause on new issuance

H-1B visa fraud demands urgent audit

Mahvash Siddiqui, an Indian-origin US diplomat who served at the Chennai consular office, has called for a complete pause on the H-1B visa program pending a full audit, citing widespread fraud she witnessed first-hand.

According to the Times of India report, writing for the Center for Immigration Studies, Siddiqui highlighted how fake degrees, forged bank statements, and counterfeit marriage or birth certificates are openly sold in Hyderabad’s Ameerpet to facilitate the H-1B “scam,” which she says operates through bribery and cultural normalization of fraud.

“Many H-1Bs claiming computer science degrees had no related coursework or programming skills; basic coding tests often exposed them. Corrupt HR officials in both India and the U.S. facilitated fake employment letters, allowing underqualified candidates to bypass scrutiny. A pervasive ‘halo effect’ favoured Indian applicants, compounded by bribery (‘rishwat’) and cultural normalization of fraud. In the U.S., some Indian managers created insular hiring networks, excluding Americans, protecting unqualified hires, and fostering ‘honor among thieves’ environments that discouraged whistleblowing. American IT graduates — trained through rigorous programs — were left unemployed or were forced to train their H-1B replacements for lower pay,” Siddiqui wrote.

Siddiqui, one of 15 junior visa officers in Chennai, described the consulate as “the H-1B visa fraud capital of the world.” She noted that the H-1B program has become a loophole for Indian nationals aged 20–45 to enter the U.S. with fraudulent credentials, displacing qualified American IT and STEM workers. “From 2005–2007, Chennai adjudicated ~100,000 H-1Bs annually. Today, demand has exploded to 400,000-plus per year,” she wrote.

She also criticized lobbying by Indian interests and Silicon Valley, which she claims misled Congress into portraying American workers as less capable. According to Siddiqui, H-1B was intended for skilled employees from any foreign country but has become a de facto immigration shortcut dominated by one country.

To address the alleged issues, Siddiqui proposed several reforms:

Pause new H-1B issuances until a full program audit is completed.

Strengthen vetting processes, rigorously verifying degrees, skills, and employment history.

Prioritize hiring of U.S. STEM graduates in sectors with available talent.

Ban nepotistic or chain hiring practices that exclude Americans.

Enforce penalties for fraud, citing recent prosecutions as evidence of deterrence.

Expand site inspections to match the scale and risk of the program.

Siddiqui’s report paints a stark picture of systemic H-1B visa abuse, highlighting both the scale of alleged fraud in Chennai and its broader impact on U.S. IT and STEM employment.