The case went viral on social media on Tuesday when villagers in several parts of Mueang and adjoining Tha Wung districts of Lopburi province started panicking after a villager claimed to have seen a krasue.
However, Muang district chief Phitsanu Praphathanan clarified on Wednesday that what the villagers thought was a ghost, was actually a chicken thief wearing the mask of an old woman with long greying hair and fangs for teeth.
He has told all administrative organisations and village chiefs to warn villagers to beware of thieves instead of fearing non-existent ghosts.
Wutthichai Paepan, 32, the owner of Pang Pang Camping resort in Saraburi's Kaeng Khoi district, told the press that he cancelled the reward offer after receiving a phone call from a Lopburi official.
The official asked him to cancel the reward as many people were starting to look for a krasue, while claiming that teenagers' motorcycles were disturbing residents at night.
“I would like to cancel a 1 million baht reward due to worries about residents' safety and risk of criminals' actions,” he said.
Wutthichai, who was born in Mueang Lopburi, said he did not believe in krasue, adding that he had heard rumours about ghosts when he was six years old.
He also asked krasue hunters to avoid disturbing residents. “Belief is a personal matter, but I do not believe in things I cannot see,” he added.
Krasue is a female spirit, whose internal organs hang down from the neck, popularised by many Thai TV series and films.
According to superstition, the ghost leaves her body and flies in search of fish and dirty foods from evening until dawn. Its organs usually shine in red or green while hunting for food.