For me, I like it when people take something I've done and use it against me. It keeps things IC and relevant.
Like, for example, using the secret society stuff that Caerwyn's judge has been spreading around. It's mostly inaccurate, and vastly out of date, but it's something that we really did. Whereas the "Put a duke in every city on the island" stuff is just wrong. As was the CTO of Golden Farrow. If Caerwyn really got that info, and didn't make it up, then some really suckered Caerwyn on it.
If you just make stuff up, then it's basically saying that you want to have a war, but can't find a reason that doesn't make you into the bad guy. Or you don't care or know what's really happening. So you make stuff up.