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I personally won't refer anyone unless I feel confident that they will represent me well. I've worked my tail off to get where I am and build a reputation. I'm not sticking my neck out for anyone if there's a chance it might come back to bite me.
I don't refer people unless I now them very well personally. That is just my own personal rule.
it's better to refer someone you know well and have worked with before, as you can vouch for their work ethic and abilities. However, if you are comfortable with the person and trust their skills, you can still refer them. It's important to be honest and transparent about your relationship with the person when making the referral.