Recent contentions about "fake news" and misinformation online has shed light on the critical need for media literacy at a global scale. Indeed, digital stories are one of the main forms of communication in the 21st century through blogs, videos-sharing websites, forums, or social networks. However, the line between facts and fiction can often become blurry in these online spaces, and being able to distinguish between reality and fantasy can have important consequences in the lives of young Internet users. Using contemporary examples from news stories, fanfiction, advertising, and radicalization, this article outlines the features, affordances, and real-life implications of digital stories. As a result, we provide recommendations for educators to create awareness and empower students about digital storytelling practices.