Memory Manipulation is the ability to manipulate the mind of an individual, either by distorting memories or otherwise removing them completely. Many supernatural species as well unnatural possess this power. It has been known to be very dangerous and sensitive ritual.
Beings that possess this ability
Chimeras that are part Werewolf are able to access this power by using their claws, though it would take someone properly trained to utilize it effectively. Theo attempted this ability but didn't do it correctly as he left Lydia comatosed
The Dread Doctors are able to make people forget about them through unknown means, reading the book on them triggers the brain in remembering them.
As a side effect of their ability to erase someone, all memories of that person are gone from another's mind, however, certain stimuli can bring those memories back as well images or evidence of that person existing. Dementia suffers may be immune.
Werewolves possess this ability through the use of their claws, though primarily used to see or share memories, it can be used to erase memories as well. Talia Hale, Peter Hale and Scott McCall have been known to successfully perform the ritual
Werecoyote are almost identical to werewolves in abilities and it may be possible that they possess this power. Malia attempted this on Elias and seemed convinced it would work as did the others of the pack, but thought it would be too dangerous given Elias' health.