Yeah definitely need to talk to the cat.

"A lot of Khajiit resort to smuggling and thievery to get by. A few bad apples spoil the bunch. You know how it is."

*gets close to cat*
Hey! Um do you by any chance have any wo-
*cat scratches face*
~later that day~
Daily Log:
Met a cat
It scratched me
I scratched back with a sword

I've driven by that spot several dozen times on GTAV, and I've still never seen that cat. Must be one of those random strangers...