Overview
The wanted system tracks criminal behavior in Hethereau. Breaking the law raises a wanted level displayed as stars, similar to the system in Grand Theft Auto. The more crimes committed, the more aggressive the response. Getting caught leads to the Prison.
Triggering crimes
Actions that raise the wanted level include:

Assaulting pedestrians or NPCs
Stealing vehicles from NPCs
Damaging property (buildings, cars, street fixtures)
Reckless driving (crashes, hitting pedestrians)
Causing public disturbances
Escalation stages
The wanted level escalates through a three-star system. At low levels, standard police units respond. As the level rises, stronger forces join the pursuit:
One star Police officers on foot and in patrol cars give chase. Relatively easy to evade.
Two stars Additional police vehicles and pursuit tactics. Roadblocks may appear.
Three stars Drones join the pursuit and drop bombs on the player, making evasion significantly harder. Heavier enforcement units are deployed.
An important detail: NPCs in Hethereau cannot actually be killed. When attacked, they dodge or flee. This keeps the wanted system consequence-based rather than violence-based.
Badge-flashing
Players can flash their Anomaly Hunter badge to peacefully requisition vehicles from NPCs without raising the wanted level. This is a legal alternative to stealing cars. The badge approach avoids a police response while still letting players grab transportation when needed.
Evasion
Players can attempt to evade pursuit by outrunning or hiding from police. Breaking line of sight and staying hidden for a period reduces the wanted level. The city's rooftops, alleys, and interior spaces provide hiding spots. Esper traversal abilities like wall-running can help shake pursuers, though drones at higher levels make rooftop escapes riskier.
Getting caught
If the player is defeated or apprehended, they are sent to the Prison (detention center). The player character changes into a prison robe and can spend several in-game days behind bars. Alternatively, players can pay bail for early release.
Community service
As an alternative to serving full time, detained players can perform community service. One known activity is maintenance work resembling a power-washing mini-game, where players clean walls and surfaces. This is similar in style to PowerWash Simulator and provides a lighter alternative to waiting out the sentence.
Integration with other systems
The wanted system interacts with vehicle gameplay, since reckless driving is one of the easiest ways to accumulate stars. Taxi driving (Side Activities) and racing both carry the risk of triggering police attention. The system was introduced in the Co-Ex Test.
Related pages
Prison What happens after getting caught.
Exploration & Traversal Movement systems used during evasion.
Co-Ex Test The beta test where the wanted system was introduced.