AirTag is showing inaccurate location
I lost my wallet I’m looking for my AirTag it’s saying it’s near me but it’s not and I use the find nearby feature the location that it’s saying it should be it’s not there
[Re-Titled by Moderator]
It's important to understand that an AirTag does NOT know its location. It has no means to do so as it is not based on GPS-technology. Instead is broadcasts a Bluetooth signal which any nearby (within 30-40') to pick up this signal, and if this phone has an active Internet connection, relay the tag's encrypted ID, along with the phone's GPS location to the Apple servers. This is where you would see the tag's "location" with the Find My app on your iPhone.
So, it this situation, if your wallet/tag is within Bluetooth range of your phone, your phone (depending on the model) will switch to Precision Finding mode to help you locate it. Otherwise, if outside this range, another phone would need to be nearby.