Criminal flagging UI bugged!
The criminal flagging interface does not currently differentiate between a ship and a pod, which leads players to think that a pod is criminally flagged.
This is not the case. You can attack a flagged player in his ship, but should you blow up his pod in secure space, you will receive a security hit, followed by Concord response.
You can blow up someone's pod without getting a security hit if your opponent has a security status of -5 or lower, if you are at war with your opponent, or if you are out of Empire space in 0.0 security.