The Ku Klux Klan usually appear in mobs by CJ's airstrip in Bone County, and usually attack the black protagonist on sight. There has also been images of them in African American neighborhoods acting hostile to all black NPCs. This myth can only be accessed through mods which replace Police officers or other NPCs with Klansmen.
Although Rockstar Games have shut many down, there are still many racist crews in GTA Online. Neo-Nazis and the Confederates are the most common of the hate mongering crews, with the outfit of the Ku Klux Klan being the preferred outfit of the second. Players can dress themselves in similar fashion to that of the KKK outfit by dressing all in white and wearing a pointy hat.