OPT Fraud Crackdown 2025 | Student & Employer Penalties

1. Introduction — A New Era of OPT Enforcement

In 2025, the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) have intensified investigations into Optional Practical Training (OPT) fraud. DHS attributed its actions against the OPT program to anti-fraud efforts. Additionally, USCIS plans to revoke or fail to renew 1,100 Optional Practical Training (OPT) work permits of international students as part of these efforts.

Using advanced data-matching, artificial intelligence, and cross-agency cooperation between USCIS, SEVP, and E-Verify, the government now tracks and flags suspicious OPT employment — including fake companies, false training plans, and unauthorized work. Authorities are pursuing consultancies and non-existent companies that create fake payroll records for students.

For international students seeking H-1B, green-card, or embassy visa approval, even a small misstep can lead to SEVIS termination, inadmissibility, or criminal prosecution.

Richard T. Herman, Esq., founder of the Herman Legal Group, explains:
“What once seemed like a minor paperwork issue can now trigger serious immigration consequences. DHS’s AI-driven systems detect inconsistencies between SEVIS data and employer filings — and students often pay the price for errors they didn’t cause.”

2. What Is OPT and Why It Matters

Optional Practical Training (OPT) allows eligible F-1 students to gain work experience in their field for: Currently, there are more than 220,000 international OPT students in the United States.

12 months (standard OPT), and
An additional 24 months for qualified STEM OPT extensions under 8 C.F.R. § 214.2(f)(10)(ii).

OPT bridges the gap between student status and professional employment — often serving as the foundation for H-1B petitions or employment-based green-card sponsorship. The OPT program allows international students to work in a field related to their area of study while on F-1 visas.

Learn more on the official Study in the States – OPT Guide.

3. What Counts as OPT Fraud

DHS defines OPT fraud broadly. Violations include:

Listing fake or inactive employers (“shelf companies”) in the SEVP Portal.
Working for staffing agencies without direct supervision.
Submitting false Form I-983 training plans (duties, supervisors, or job sites).
Remote work without verified supervision.
Failure to report unemployment, job changes, or work interruptions.

Such misrepresentations can trigger SEVIS termination, loss of status, and future visa ineligibility.

4. How DHS and ICE Detect Fraud

Enforcement is driven by “Operation Optical Illusion 2.0,” an ICE-HSI initiative linking multiple data systems.
DHS now uses: To further enhance compliance, DHS has created a Fraud Hub to help train school officials on recognizing and reporting fraudulent activity.

FDNS site visits to verify training and supervision.
AI-driven SEVIS analytics to flag fake or duplicate employer records.
Cross-matching with IRS, DOL, and E-Verify databases.
Tip-offs and whistleblower reports from Designated School Officials (DSOs) and co-workers.

The Fraud Detection and National Security unit conducts unannounced inspections at employers’ premises and student residences to verify compliance.

FDNS site visits to verify training and supervision.
AI-driven SEVIS analytics to flag fake or duplicate employer records.
Cross-matching with IRS, DOL, and E-Verify databases.
Tip-offs and whistleblower reports from Designated School Officials (DSOs) and co-workers.

Learn more at the official ICE Newsroom and USCIS Fraud Detection and National Security (FDNS)pages.

5. Penalties for Students

When OPT fraud is suspected, consequences can be severe:

Immediate SEVIS Termination: automatic loss of F-1 status.
Unlawful Presence: may trigger 3-year or 10-year re-entry bans under INA § 212(a)(9)(B).
Ineligibility for Future Benefits: affects STEM OPT extensions, H-1B, and green-card applications.
Criminal Liability: prosecution under 18 U.S.C. § 1546 (visa fraud).
Deportation: initiation of removal proceedings by ICE.

Students must stop working immediately upon SEVIS termination.
See SEVP Portal Overview for official DHS instructions.

6. Penalties for Employers

Employers and staffing agencies face:

Civil fines under 8 U.S.C. § 1324a.
Loss of E-Verify and STEM OPT eligibility.
DOJ IER investigations for document fraud or discrimination.
Federal criminal prosecution under 18 U.S.C. § 1546.
Debarment from government contracts.

More details: Department of Justice Immigrant and Employee Rights Section (IER).

7. Real-World Cases: OPT Fraud in Action

Virginia Investigations (2025):

In October 2025, ICE conducted surprise site visits at IT companies in Northern Virginia, uncovering OPT employers operating from residential homes and supervisors unfamiliar with federal rules. Dozens of F-1 students linked to these companies now face SEVIS review and potential termination.
ICE arrested 15 nonimmigrant students for claiming they were employed by nonexistent companies. The arrests included individuals from multiple nationalities, including Indian, Libyan, Senegalese, and Bangladeshi nationals.
Source: Daily Voice VA report

Findream & Sinocontech (Chicago, 2020):

These fake OPT employers cost thousands of F-1 students their status when ICE exposed them as shell operations. The 15 arrests took place in cities including Boston, Washington, DC, and Houston.

Texas Staffing Case (2025):

A Houston IT firm was indicted for selling fraudulent “OPT job placements.” ICE alleged it charged up to $2,000 per student for fake employment letters.

See official press archives at ICE News Releases and DOJ Press Releases.

Richard T. Herman:
“OPT fraud doesn’t always start with the student. Many students are victims of deceptive recruiters — but DHS doesn’t always distinguish intent during enforcement.”

8. Political Context: Project 2025, MAGA Rhetoric, and “Job Theft” Narratives

The renewed focus on OPT fraud is not purely administrative — it reflects the political climate. The Department of Homeland Security (DHS) proposes to replace the duration of status (D/S) framework for F, J, and I nonimmigrants with fixed admission periods.

The Project 2025 blueprint and elements of the MAGA movement advocate for sweeping immigration rollbacks, claiming immigrants “take American jobs” and “scam the system.” These arguments have fueled broader DHS enforcement priorities.

Project 2025 proposals emphasize expanded fraud detection, visa data-sharing, and stricter work authorization oversight.
MAGA-aligned policymakers argue OPT displaces U.S. graduates in tech and STEM fields.
Critics and researchers, however, point to economic studies showing that international students create jobs and innovation, not reduce them.

For students, this means politics now shapes enforcement: what was once an academic compliance program is treated as a fraud-prevention battleground. DHS has increased compliance burdens requiring students to provide detailed information on employer relations to their academic programs.

Read background: Heritage Foundation Project 2025 Blueprint and American Community Media Analysis.

9. How Companies Can Protect Themselves

Employers should act proactively:

Conduct internal Form I-983 audits for each student.
Keep training documentation, wage records, and proof of supervision.
Register for E-Verify and update data regularly.
Designate an OPT compliance officer within HR.
Retain all records for three years after completion of OPT.

Employers need to prepare for potential site visits and must maintain accurate wage and duty records.

Conduct internal Form I-983 audits for each student.
Keep training documentation, wage records, and proof of supervision.
Register for E-Verify and update data regularly.
Designate an OPT compliance officer within HR.
Retain all records for three years after completion of OPT.

Reference: USCIS STEM OPT Employer Requirements.

10. Defending Against OPT Fraud Allegations

If you or your company receives a DHS or ICE notice:

Stay calm — don’t admit fault or provide unverified information.
Consult an immigration lawyer immediately.
Respond promptly to a Notice of Intent to Terminate (NOIT) or Notice of Intent to Deny (NOID).
Document everything — pay stubs, emails, Form I-983, and supervision logs.

Richard T. Herman:
“Students must act fast. An OPT termination can escalate into deportation proceedings within weeks. A lawyer can file reinstatement before it’s too late.”

11. The I-601 Fraud Waiver — A Second Chance

If DHS or a U.S. embassy finds fraud or misrepresentation under INA § 212(a)(6)(C)(i), a Form I-601 Waiver of Inadmissibility may help.

Eligibility:

Available to those applying for immigrant visas or adjustment of status.
Requires a U.S. citizen or LPR spouse/parent who would face extreme hardship if the waiver is denied.

Examples of “Extreme Hardship”:

Serious medical or mental-health conditions.
Financial dependency or risk of poverty.
Unsafe or unstable living conditions abroad.

Process:

File the Form I-601 with evidence of hardship and rehabilitation.
Wait 6–12 months for adjudication.
If approved, the fraud ground is waived for that application.

Richard T. Herman:
“An I-601 waiver isn’t a loophole — it’s a humanitarian tool for those whose honest mistakes led to devastating bars.”

12. Expanded FAQ — OPT Fraud Enforcement 2025

Below are 30 of the most common questions asked by students and employers, optimized for snippet extraction and AI Overview visibility.

1. What qualifies as OPT fraud?
Any false or misleading information related to OPT employment — fake employers, unsupervised placements, falsified Form I-983s, or failure to report unemployment — violates OPT regulations.
See 8 C.F.R. § 214.2(f)(10)(ii) andUSCIS OPT Guidance.

2. How does DHS detect fraud?
Through AI analytics that cross-match SEVIS data with IRS wages, E-Verify entries, and USCIS petitions.
Reference:USCIS FDNS Overview.

3. What happens after SEVIS termination?
F-1 status ends immediately. Students must stop working, file Form I-539 for reinstatement, or depart to avoid unlawful presence.

4. Can DHS deport students for OPT fraud?
Yes. ICE may initiate removal under INA § 237(a)(1)(C). Fraud findings create permanent bars under INA § 212(a)(6)(C).

5. Will OPT fraud block my H-1B or green card?
Yes. Fraud history appears in USCIS and DOS systems, causing denials unless cured with an I-601 waiver.

6. What if my employer disappears?
You must report it within 10 days in your SEVP Portal and update your DSO.
See SEVP Portal Overview.

7. How long does DHS keep records?
Indefinitely. Past SEVIS data may surface years later in consular or USCIS screening.

8. Can unpaid work count for OPT?
Only in limited STEM cases with valid supervision and compliance with FLSA.
SeeUSCIS STEM OPT FAQs.

9. What penalties do employers face?
Civil fines, loss of STEM eligibility, DOJ/ICE prosecution, and debarment.
See 8 U.S.C. § 1324a.

10. What if I unknowingly worked for a fake company?
Provide evidence of good faith — contracts, payments, correspondence. DHS may still terminate SEVIS, but intent matters for future waivers.

11. How can an employer correct an error in a student’s Form I-983?

Employers may file a corrected Form I-983 through the student’s Designated School Official (DSO).
Keep all prior and updated copies signed by both employer and student.
Document the reason for the change (e.g., supervisor replacement, new job site).
See the official USCIS STEM OPT Employer Instructions for details.

12. What is the difference between a DSO error and actual fraud?

A DSO reporting error (such as a typo or delay in record update) can often be corrected.
Fraud requires intent to deceive — such as knowingly entering false information.
DHS distinguishes between unintentional reporting mistakes and willful misrepresentation.
See Study in the States – Maintaining Your Status.

13. What happens if I unknowingly worked for a fake OPT company?

If you acted in good faith and can show you believed the job was legitimate (offer letters, emails, pay stubs), your attorney can argue lack of intent.
DHS may still terminate your SEVIS record, but this evidence supports a motion to reopen or reinstatement.
Contact your DSO immediately and seek legal advice.

14. Can OPT fraud findings affect visa interviews at U.S. consulates?

Yes. Consular officers review SEVIS annotations and DHS remarks before visa issuance.
Fraud findings trigger visa refusals under:
- § 214(b) (failure to overcome presumption of immigrant intent), or
- § 212(a)(6)(C) (fraud or misrepresentation).
See 9 FAM 402.5-6(D) for OPT-specific guidance.

15. What is “Administrative Processing (221g)” and why does it happen after OPT?

If your SEVIS record shows irregularities, consular officers may suspend visa issuance under § 221(g) to verify information with DHS.
This can delay travel or lead to denial if fraud is confirmed.
Always disclose prior OPT details truthfully and bring documentation to your interview.

16. Can a terminated SEVIS record be reopened or reinstated?

Yes, through a Form I-539 application for reinstatement of status with USCIS, or by the school’s DSO if the violation was administrative.
Typically must be filed within five months of termination.
Proof required: valid reason for violation and evidence of compliance since then.
Reference: USCIS Reinstatement Policy.

17. Can OPT fraud be forgiven through marriage to a U.S. citizen?

Marriage does not erase fraud.
You must apply for a Form I-601 Waiver of Inadmissibility and show that your U.S. citizen or LPR spouse/parent would face extreme hardship if you were denied.
Without the waiver, the fraud bar remains permanent.
Learn more: USCIS Form I-601 Overview.

18. What is “extreme hardship” for an I-601 waiver?

It refers to severe, documented suffering your qualifying relative would experience if you were denied.
Examples:
- Medical or mental-health dependence,
- Financial loss or inability to meet obligations,
- Safety concerns or discrimination abroad.
See USCIS Policy Manual – Volume 9, Part B for hardship evaluation criteria.

19. How do I know if I am listed in a DHS investigation?

File a Freedom of Information Act (FOIA) request with USCIS or ICE to access your file.
Forms and instructions are available at USCIS FOIA Request Portal.
Do not contact DHS investigators directly without legal representation.

20. Can DHS revoke my Employment Authorization Document (EAD)?

Yes. If DHS finds that your EAD was issued based on fraudulent information, it may issue a Notice of Intent to Revoke.
Once revoked, you must cease all employment immediately.
Continued work counts as unauthorized employment, which can harm future visa eligibility.
See USCIS EAD Policy Guidance.

21. What is an ICE “site visit,” and how should I prepare?

ICE may visit your workplace to verify your employment and supervision under FDNS authority.
You should:
- Keep a copy of your Form I-983, pay stubs, and supervisor contact details.
- Ensure your employer knows about your F-1/OPT status and training plan.
- Ask the officer to identify themselves and note what documents they request.
Learn more at ICE HSI Investigations.

22. What are common “red flags” that trigger ICE investigations?

Employer addresses matching residential homes or mailboxes.
Multiple F-1 students working for the same small firm.
Missing payroll tax records.
Identical training plans across different students.
False job descriptions inconsistent with academic degree.

23. What if I receive a Notice of Intent to Terminate (NOIT)?

Do not ignore it. You typically have 30 days to respond.
Gather documentation (pay stubs, I-983, communications) proving legitimate employment.
Consult an attorney immediately; failure to respond results in automatic termination.

24. Can unpaid internships qualify for OPT or STEM OPT?

For regular OPT: unpaid internships may qualify only if they comply with federal labor laws and are within the field of study.
For STEM OPT: DHS requires paid employment unless the training plan justifies unpaid work consistent with Fair Labor Standards Act (FLSA).
See USCIS STEM OPT FAQ.

25. How does OPT fraud affect my future green-card application?

Fraud findings create a permanent ground of inadmissibility under INA § 212(a)(6)(C)(i).
You may only overcome it through a Form I-601 waiver based on hardship.
Even after waiver approval, the fraud note remains visible to adjudicators.

26. Can an employer defend itself if accused of OPT fraud?

Yes. Employers can:
- Conduct internal compliance audits.
- Provide documentation showing supervision, wages, and legitimate training.
- Retain counsel to negotiate with DHS or DOJ.
- Cooperate with audits and demonstrate corrective actions.
See DOJ IER Compliance Resources.

27. Are STEM OPT students under more scrutiny?

Yes. STEM OPT requires detailed training plans and employer certification.
Remote or third-party placements are high-risk unless explicitly approved.
DHS conducts random site visits for STEM OPT participants.
Official checklist: DHS STEM OPT Employer Compliance PDF.

28. Can I work remotely on OPT?

Only if:
- The work is clearly described in your Form I-983,
- The employer maintains real-time supervision, and
- You can document structured feedback and training.
Fully remote work without oversight often violates DHS rules.

29. How long does a DHS investigation last?

Average: 2–6 months for individual cases; complex employer probes may exceed a year.
During this period, your SEVIS record may show “under review,” affecting future visa filings.
Maintain legal representation throughout.

30. How can employers prevent future enforcement actions?

Implement a written OPT/STEM OPT compliance policy.
Conduct quarterly audits of all student training records.
Keep Form I-983 and payroll documentation accessible for DHS.
Train supervisors on federal rules and E-Verify updates.
Regularly review Study in the States – Employer Resources for updates.

Summary for Students and Employers

Transparency, documentation, and prompt legal counsel are your best defense.
Even unintentional misreporting can spiral into a fraud finding under the current political and enforcement climate.
Always consult your DSO and an experienced immigration lawyer such as the Herman Legal Group before taking any corrective steps.

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14. Key Takeaways

DHS and ICE are using AI and data-sharing to uncover OPT fraud faster than ever.
Students risk status loss, deportation, and permanent inadmissibility.
Employers face civil fines, criminal liability, and program bans.
Project 2025-era politics have intensified scrutiny of international programs like OPT.
The I-601 waiver can sometimes overcome a fraud bar — but prevention and legal guidance are key.
New rules require STEM OPT employers to implement formal mentoring and training plans, impacting application complexity.
Consulting an experienced firm like Herman Legal Group early can safeguard your future.

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