This excerpt is taken from Sheikh Hafiz Mubashir Hussain Lahori's book Signs of the Day of Judgment in the Light of Authentic Hadiths.
Sign of the Day of Judgment: Lying will be done frequently
عن أبى هريرة رضى الله عنه أن رسول الله صلى الله عليه وسلم قال : لا تقوم الساعة حتى تظهر الفتن ويكثر الكذب ويتقارب الأسواق
It is narrated from Hazrat Abu Huraira (RA) that the Messenger of Allah (PBUH) said: "Before the Day of Judgment is established, trials will appear, falsehood will become widespread, and markets will become close-knit."
Reference: Bukhari: Book of Tribulations: Chapter on the Appearance of Tribulations (7061) Muslim (107) Ahmad (687/2) Abu Dawood (4255) Ibn Majah (4096)
وعن أبى هريرة رضى الله عنه أن رسول الله صلى الله عليه وسلم قال : سيكون فى آخر الزمان أناس من أمتي يحدثونكم ما لم تسمعوا أنتم ولا آباؤكم فإياكم وإياهم ، وفي رواية : لا يضلونكم ولا يفتنونكم
It is narrated from Hazrat Abu Huraira (RA) that the Messenger of Allah (PBUH) said: "In the last times, some such (false) people will appear who will fabricate and narrate to you hadiths which neither you nor your ancestors have heard, so beware of them lest they lead you astray or cause you to fall into trials."
Reference: Muslim: Introduction: Chapter on Prohibition of Narration from the Weak (7) Ahmad (423/2 - 460) Ibn Hibban (198/15) Dala'il al-Nubuwwah (550/6) Mushkil al-Athar (397/7)
It is narrated from Hazrat Abdullah bin Mas'ud (RA) that Satan will come to a people in human form and narrate false hadiths, causing discord among the people. One of them will say, "I heard this hadith from a person whose face I recognize but whose name I do not know."
Reference: Muslim: Also (17)
Hazrat Abdullah bin Umar (RA) said that Satan is imprisoned in the sea, among whom the most powerful is "Sulaiman." Soon he will appear and recite the Quran to the people. (Meaning he will present a false Quran to deceive.)
Reference: Muslim: Also (18)
Benefits:
(1) The spread of falsehood is a sign of the Day of Judgment.
(2) This sign has been apparent for a long time and is gradually increasing.
(3) Near the Day of Judgment, some people will become so bold that they will slander the Messenger of Allah (PBUH) and mislead people by narrating false (fabricated) hadiths.
(4) Before presenting any hadith, its authenticity should be verified. If it is reliable and acceptable as evidence, it may be used; otherwise, it should be abandoned.
(5) Those who narrate false hadiths will be accompanied by Satan, and they will present false hadiths and even a false Quran before the people.
(6) Sometimes a correct hadith may seem unfamiliar to a person because they have not studied it; therefore, it is not correct to reject such hadiths that are authentic and trustworthy due to ignorance.
(7) Lying in ordinary conversation is a blameworthy sin and a sign of hypocrisy, while regarding lying in hadith narration, the Prophet Muhammad (PBUH) said:
من كذب على متعمدا فليتبوأ مقعده من النار
"Whoever deliberately lies upon me, let him prepare his place in the Fire."
Reference: Muslim: Also (4)