Ok I just let them go if I can't receive a bounty from them, and warrants aren't red so I did not risk it...twice! Hanging out by Nav beacons prowling lol I love it. Thank you!
At a nav beacon, you can use the KWS while you're doing the normal scan, but only shoot the guy if he's wanted. Basically, there's not really any reason to look at what the KWS tells you.
If you're collecting bounties, you'll get loads more at a high resource extraction site than at a nav beacon. There's a good one in the starter area in Dromi. Outside the starter system, LTT 15574 is always extremely busy and Haxel Port has loads of good outfitting plus a manufactured material trader, so you can collect materials as well as bounties.