Living in Indonesia, with its diversity of cultures, ethnicities, religions, and other diversity demands high tolerance and mutual respect from every citizen. This long-standing diversity must be maintained and preserved. However, this long-established relationship has recently begun to crack with the unstoppable spread of massive information. Fake news, including hoaxes, has filled these diversity rooms, and not a few have attempted to create social conflict. This paper attempts to determine how fake news is formed and spread. But most importantly, this paper will offer tips on identifying fake news. This literature research is a continuation of previous research in which the data source was obtained from capturing fake news published online and on social media. The study showed that fake news might be created through fabrication, misleading editing, amplification, parody of satire, and deception. They are flavored with false sentences and spread via social media using anonymous or fake accounts so that people who read them spread it back to other communities. Fake news can ruin a good relationship if neither party verifies and confirms the information. Thus, digital literacy plays an important role in identifying fake news, not only in political issues but it is a valuable life skill that can help individuals make informed decisions in all areas of their lives and navigate the vast amount of information available online.