My previous employer was one with a large footprint in India. When I began to conduct technical screenings of candidates for our Indian operations, I was warned of "CV inflation". Candidates would learn what skills got interviews and would list them on their CV.
Most of the time, they were honest in interviews and admitted they knew nothing about the skillset
I've seen this a lot. A person lists Web Services on their resume, and they don't even know what SOAP and WSDL are.
I just interviewed a candidate on Thursday, whose resume pretty much overstated every skill he actually had. He described his masters program, and made it look as if he had completed it, when in fact, he had only done two classes of graduate level work. He listed skills on which he had shadowed an actual engineer for a few days. Basically, his resume showed the Goodyear Blimp, but his experience was a single party balloon. . .