There was a woman who was marginally acquainted with people in my circle (our kids went to the same school) she had a habit of making police reports (and CPS reports, and animal welfare reports etc) because she got angry with someone. There was always something in the reports that was plausible enough that it would cause an investigation, but everything would end up being proven to be untrue.
She ultimately was arrested when one of her victims got angry enough to make a big enough stink. She spent 30 days in jail (no one would post bond for her) and then plea bargained to 3 years probation.
So yes, I do believe that if someone is aware of a murder that might have happened or other quite serious crime, then of course they should report it even if they got the info second or third hand. However for more minor things, I wouldn't do it. Maybe the risk of false reporting isn't great, but I still wouldn't do it.