Psychology of Made Up Stories

by Donna
(USA)

There is this person I know that (literally) makes things up about people. She made up a story about someone and said that they tried to commit suicide and that that person was found half dead in the woods. When in fact, this person, has never in his life tried to commit suicide.

This person, also made up a story about someone else and said that this person was having oral sex with someone in order to get drugs. And this was also a made up story.

Why do people make things up? Is there something psychologically wrong with them that provokes them to do this?