My son is just turning 6 and is slowing become a master of lying. He hasn't figured out how to make up stories like your daughter yet, but wow is she imaginative! Maybe you could sit with her and allow her to make up new stories that are more on a possitive note. You could do the recording for her and then read it back to her. It may be that she just likes to tell stories. She could be a writer or an actor one day. I'm sorry that she's causing anxiety, but she may also like the reactions that she's getting from you. She's probably testing herself to see just how convincing she can be with her story telling. Good luck!
