Lesser folk can't buff you, teleport you or help you in any way...you're only able to apply your own (not so bad, as a shaman).
You'd have to encounter another red flagged player to even have the possibility of anything being taken from your corpse (assuming they killed you)...but I don't think it works that way on blue.
Long story short, you won't encounter any other red flagged people above level 1-2
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