I have a friend who innocently lies...?

My "acquaintance" (She is not exactly my friend) lies about a lot of things. Kate* is a nice girl, but she tells me that her aunt is Martha Coolidge, she knows Chace Crawford and tons of other movie stars. I looked her up online and did not find a single thing... she also said Martha Coolidge has a son named Ethan, who starred in American Dreamz as William Williams, and I have proven that wrong. I don't know what to say to her when she lies! She is very popular, so I'm not sure why she'd need to make up these lies. Thanks so much! *Name has been changed