- J5 releases NFTs red flags document.
- The document addresses banks, law enforcement personnel, and citizens.
- The red flags document contains some of the best practices when facing fraud.
The Joint Chiefs of Global Tax Enforcement (J5) announced the release of its NFTs red flags document to warn banks, law enforcement, and citizens about some of the common red flags when dealing with NFTs.
The “J5 NFT Marketplace Red Flag Indicators” was made to list elements that should draw concern while dealing with NFTs. As the official report stated, the document isn’t meant to include all the risks associated with NFTs but rather a list of the best practices from the five countries in the J5, which are Australia, the Netherlands, Canada, The UK, and The US, from their dealings with NFTs in various investigations.
The official report also said that while people are making the right decisions when it comes to dealing with cryptocurrencies and NFTs, this sphere is still not immune to criminals who are looking for any way to exploit new technologies.
Special Agent Oleg Pobereyko, J5 Crypto Group lead, said.
This space is changing so fast and technologies and products have the ability to become the ‘next big thing’ without any due diligence or regulation on the part of the creator of the product. We tried to put together a product that would help keep people safe while law enforcement catches up to these particular concerns.
The main purpose of this document is to provide better insights to banks, law enforcement partners, and private industry regarding potential red flags in NFT Marketplaces as J5 continuously seeks to improve fraud detection measures in place to prevent criminal activity.
“I hope this is the first of several of these intelligence bulletins the J5 puts out,” said Chief Jim Lee of the IRS Criminal Investigation, in support of the J5 new release.