from Wikipedia

The defining characteristics of pseudologia fantastica are that, first, the stories told are not entirely improbable and often have some element of truth. They are not a manifestation of delusion or some more intense type of psychosis: upon confrontation, the teller can admit them to be untrue, even if unwillingly. Second, the fabricative tendency is long lasting; it is not provoked by the immediate situation or social pressure as much as it originates with the person's innate urge to act in accordance.

Third, a definitely internal, not an external, motive for the behavior can be discerned clinically e.g. long lasting extortion or habitual spousal battery might cause a person to lie repeatedly, without the lying being a pathological symptom.

[2] Fourth, the stories told tend toward presenting the liar favorably. For example, the person might be presented as being fantastically brave, knowing or being related to many famous people.

Pseudologia fantastica may also present as false memory syndrome, where the sufferer genuinely believes that fictitious events have taken place, regardless that these events are fantasies. The sufferer may believe that he or she has committed superhuman acts of altruism and love or has committed equally grandiose acts of diabolical evil, for which the sufferer must atone, or has already atoned for in his/her fantasies.

Yet another facet of the disorder presents where the sufferer has been repeatedly asked to recite lists of alleged injustices against others. These events occur where a person is confined involuntarily and deprived of sleep.[citation needed]

Cults are typically based around charismatic individuals who may suffer pseudologia fantastica and convince their devotees that they have received visions or divine revelation. Charles Manson of the Manson Family was able to control his devotees by use of his near photographic memory, and his ability to recite his lies verbatim.[