Here is the big picture.
Path 1 - worker outside US.
1. Worker outside US gets in touch with body shops in US.
2. The body shops forces the worker to fake their work experience, take money and apply H1B.
3. If it gets thru lottery,the worker lands in US.
4. The body shop provides cheap accommodation for the worker.
5. The body shop runs fake payrolls.
6. The workers finds a contract job by faking skills and doing proxy interviews, lip syncs on video interview calls.
7. Gets the contract job.
8. Gets fired when the employer realises that the worker is fake.
9. Goto step 5.
10. In parallel , the body shop will start GC process and the fake worker becomes Green Card holder and finally a citizen.
1. Many students comes to US to do master's degree after their bachelors.
(especially people from a particular state from India,I do not want to mention the state)
2. Finishes masters ( 2 years ). Gets an OPT work permit for 2 years.
3. The body shops recruit these students with nil experience.
4. Fake up their work experience to say 5 - 6 years.
5. Runs fake payroll when they are job hunting.
6. Send these students to work as a contractor and applies H1B for them. Since they have an MS degree , the odds are high for them to get selected in the lottery.
7. These fake workers outsource their office job to India at night and get it done from an experienced worker for a small amount.
8. At some point , the employer understands the worker is fake,fires the contractor.
9. Goto step 5.
10. In parallel,the body shop will apply for GC in EB2 category and the fake workers becomes a Green card holder within 7 years and eventually a citizen.
There is lot of fraud going on there. I would say about 50% of H1B visas go to these scams. Ask any Indians working on big companies and they can explain you the bigger picture. Its pathetic that DHS/USCIS are unaware of these widespread scams.