Townsfolk will report all sorts of crimes in Red Dead Redemption 2. From small crimes like disturbing the peace, to theft, or even murder. If you do something wrong there are snitches everywhere. Fortunately you have the option of stopping witnesses from reporting crimes and this is how you do it.
First things first, if you commit any reportable offense, you’re gonna have witnesses. The game will alert you that a witness has seen the crime. At this point you can use the mini-map to see where this witness is. The icon looks like an eye and it will usually be running away from you towards some sort of law enforcement officer.
If the witness makes it to the officer they will start investigating. You don’t want it to get to this point. Instead, stop the witness from reaching them and either kill them or intimidate them into keeping quiet.
To do this, chase after the witness and then use the LT/L2 button to target them. If they are getting ready to report you, you can defuse the situation by pressing the Y button to Stop the Witness. You’ll confront the witness and you can either Threaten, Beat, or Dismiss them.
If you don’t do this in time, you will become Wanted and you will likely need to pay your bounty before you can interact with certain vendors, fast travel locations, and NPCs.