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Beware NFT ‘Red Flags,’ Global Tax Agencies Warn Police, Banks

April 28, 2022, 6:42 PM

Law enforcement, banks, and taxpayers should be on high alert for “red flags” signaling fraud in the nonfungible token marketplace, according to a new report from the Joint Chiefs of Global Tax Enforcement, commonly known as J5.

The report describes more than a dozen “strong indicators” of fraud in the NFT marketplace of which investors, police, and banks should be wary, as well as eight “moderate indicators” that could signal fraud. The report, hailed as the “first of its kind” from the global tax enforcement group, comes as the NFT marketplace booms and tax authorities like the IRS seek to ...