Your friend has always had an insecure streak in the midst of large groups. She tends to become a different person, you assume as a way to compensate for her own fears that the real her just isn’t good enough. But lately she seems to be taking this to a new level.

At a recent party with a group of some of your other friends, you overhear her lying [1] about what she does, where she lives, and where she went to college. She then proceeds to make up a completely phony story involving you. You’re shocked that she’d just blatantly lie to your friends and you think this should be addressed. It's going to be an awkward situation so how would you handle this?

Source [2]