ICE Crackdown on OPT Fraud Puts Employers on High Alert
ICE has detected over 10,000 fraudulent OPT employment claims, intensifying enforcement and regulatory review.
Why it matters: Corporate legal teams advising on immigration face rising compliance risks as federal scrutiny of the OPT visa workforce grows. Employers using OPT workers must adopt stricter diligence to avoid penalties or reputational harm.
- ICE found over 10,000 foreign students involved in suspect OPT employment as of May 2026.
- Investigations uncovered fake employers, empty offices, and residential addresses used as mass worksites.
- Nearly 300,000 international graduates participated in OPT in 2024/25, including STEM OPT.
- DHS is actively re-evaluating the OPT program and considering new regulations targeting fraud and security concerns.
U.S. Immigration and Customs Enforcement (ICE) has ramped up enforcement against fraudulent use of the Optional Practical Training (OPT) visa program, a key work authorization route for international graduates on F-1 visas.
- On May 12, 2026, ICE announced identifying over 10,000 cases involving foreign students with dubious or fraudulent OPT employment.
Per ICE, findings included empty buildings listed as company addresses and residences acting as supposed work sites for hundreds of students. - "OPT has become a magnet for fraud," said Todd M. Lyons, Acting Director of ICE, warning that the fraud is "deliberate, coordinated, and criminal." He emphasized, "We will not tolerate abuse of our programs, and more actions are forthcoming."
- This comes as nearly 300,000 international graduates—across standard and STEM OPT pathways—participated in the program during the 2024/25 school year.
- The Department of Homeland Security confirmed in January that it is reviewing OPT’s scope and duration, considering amendments to address fraud, worker displacement, and national security issues (DHS letter).
For employers, this heightened enforcement translates to more rigorous compliance obligations. Legal teams should proactively review documentation and verify employment relationships to mitigate risk. As regulatory changes are debated, staying informed and updating policies is critical.
By the numbers:
- 10,000+ — Foreign students identified in fraudulent employment under OPT by ICE as of May 2026
- 300,000 — International graduates in the OPT program during the 2024/25 academic year
- Jan 2026 — DHS confirmed review of OPT’s scope and duration
Yes, but: Details and timelines for possible DHS policy changes to the OPT program remain unclear.
What's next: ICE has indicated that additional enforcement actions are forthcoming; employers should expect ongoing scrutiny.