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How would you call the action of someone who hears a news, magnifies it and then transmits it to someone else which would resault in an untrue story about (somebody / an event) comparing the original one in the manner that the final telling bears only a scant resemblance to the original and occasionally even no similarity?

Please consider this act sometimes, can be done just to draw the listener's attention or even habitually!

PS. I'm looking for a an expression / an idiom or even a saying or proverb to describe this action.

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Idiomatically, if you do that, you are blowing it out of proportion:

[The Free Dictionary]
blow (something) out of (all) proportion
To make something seem more important, negative, or significant than it really is; to exaggerate something or focus unnecessary attention on something. I'm sure he didn't mean anything by that comment—don't blow it out of proportion. Of course she's mad at me because I didn't call her back—you can always count on my mom to blow something out of all proportion!

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