SEVP Flags STEM OPT Fraud Red Flags for F-1 Students

SEVP Warns of STEM OPT Fraud Red Flags for F-1 Students

The Student and Exchange Visitor Program (SEVP) recently issued a warning about potential fraud related to the STEM Optional Practical Training (OPT) program for F-1 students. Broadcast Message 2603-02, sent in March 2026, specifically highlighted concerns within IT recruitment, consulting, and staffing agencies. This message, distributed to all users of the Student and Exchange Visitor Information System (SEVIS), urges designated school officials (DSOs) to be vigilant for signs of fraudulent arrangements. The SEVP is collaborating with Department of Homeland Security partners to investigate these issues, noting that some arrangements may not be a suitable fit for the STEM OPT program.

It is important to understand that this warning serves as guidance and does not establish new rules or replace existing legal requirements. It also does not create any new enforceable rights or benefits for individuals or institutions. The SEVP’s message aims to inform and guide, rather than to change the fundamental regulations of the STEM OPT program.

Screening Clues for Schools and Students

The SEVP has outlined several screening signs that school officials and students should be aware of when considering STEM OPT opportunities. These indicators are meant to help identify potentially problematic situations before they arise. Being aware of these signs can help students make informed decisions and avoid situations that could lead to complications with their F-1 status.

• Vague Company Websites: A company website that lacks clear examples of client work, contact information, or social media presence can be a warning sign. Such a site might not provide enough verifiable information about the company’s operations or legitimacy.
• Discrepancies in Job Duties or Worksite: If the job duties described by the employer differ from what was initially presented to the school, or if the listed worksite appears unsuitable or does not match the address on Form I-983, it warrants further investigation. The training plan (Form I-983) is a critical document, and inconsistencies related to it are significant.
• Unfamiliar Employers with Many F-1 Students: An employer that is not well-known and is hiring a large number of F-1 or M students from a single school could indicate a pattern of potentially problematic placements. This could suggest the employer is more focused on providing OPT opportunities than genuine training.
• Remote Work or App-Arranged Work: The SEVP has noted concerns about remote work arrangements or jobs secured through messaging apps like WeChat. A related guide also mentions WhatsApp as a platform where such arrangements might be facilitated.

Site-Visit Findings by Investigators

In addition to screening clues, investigators have encountered specific conditions during site visits that raise red flags. These findings are based on direct observations and interactions during investigations into suspected fraud. They represent situations where the reality of the employment arrangement did not match expectations or program requirements.

• Unoccupied Business Premises: Investigators have found businesses operating from addresses that were actually residences, with no employees present. This suggests the business may not have a physical operational presence or may be using a residential address for fraudulent purposes.
• Offshore Staff and Uninformed Officials: Businesses with human resources or payroll staff located overseas, and company officials who have little knowledge of the business they represent, are also a concern. This can make it difficult to verify employment details or understand the company’s structure.
• Contradictory Information and Absent Employees: Inconsistent statements about the business or its student workers, students who report having STEM OPT jobs but never actually show up for work, and non-working phone numbers have been observed. These issues point to a lack of genuine employment or a breakdown in communication and verification processes.

These findings, along with the screening clues, are considered potential indicators of fraud and are not automatically grounds for penalties. However, they signal areas that require careful scrutiny by DSOs and students.

The Role of Staffing Agencies in STEM OPT

Staffing or placement agencies can play a role in helping students find STEM OPT training opportunities. However, the SEVP emphasizes that only the qualifying employer can sign Form I-983. This means the agency itself must be the student’s E-Verified employer and must be responsible for providing and overseeing the training. The employer that signs the training plan must directly employ the student. They cannot delegate their training responsibilities to a client company or any other third party.

A separate guide offers advice to students, cautioning them about placement fees, employment that exists only on paper, and unpaid periods between assignments. These are general cautionary points and not new requirements from the SEVP broadcast.

Investigations and Reporting Suspected Fraud

Suspected cases of STEM OPT fraud can be referred for investigation by Homeland Security Investigations (HSI) and the U.S. Department of Justice. These investigations can lead to administrative or criminal proceedings. A referral is a possibility, not an automatic consequence.

Students who have questions about guidance from a recruiter or employer should reach out to their DSO. Both students and school officials can report suspected noncompliance through the ICE tip line, the SEVP Response Center, or a local Project Campus Sentinel agent. Concerns regarding wages and employment conditions should be directed to the Department of Labor. The SEVP Response Center can be contacted by phone at 703-603-3400 or 1-800-892-4829, or via email at [email protected]. They are available Monday through Friday, from 8 a.m. to 6 p.m. Eastern Daylight Time, excluding federal holidays.

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