Not really that extreme. It's a CrimeBusters-style informant line that rewards 500 bucks for actionable info.

If you give info that is legitimate, but ultimately unactionable (say, you report someone who has an active and valid work visa, because you saw them hanging around a Costco parking lot offering to help carpentry projects cash-only), it's likely the person in question won't even notice. They'll check in their system, see the visa exists, see that they are filing proper taxes, and move on.

False rape accusations involve destroying the guy's life BEFORE any real legal action takes place. It's quite different.