Outlaws are small, weak units of bandits that spawn in small groups all over Pendor. They cannot spawn an army. They are considered to be part of a different faction than Forest Bandits. In the game, groups of outlaws can have different labels, such as "Ragged Outlaws" or "Desperate Cutthroats."
They start out weak, but as the game progresses, they will start growing in numbers and some will even be joined by Rogue Knights and their squires, who seem to show a similar interest to what they're doing.