The problem is, recruiters/hiring managers will sometimes call your former employer to verify your actual salary.
Where this comes from I don't know. I'm sure there is a law that this common belief comes from.
Saying nothing is the safest choice. Most employers only confirm employment as a courtesy to their former employees.
Lie. It's to cover their arse from lawsuits.
Tangentially, it's really abrasive and generally unnecessary to start a comment by calling someone a liar. You can disagree with me here, and that's totally fine. To call me a liar for holding a different opinion than you makes you seem really petty. Arguing about the reason companies will disclose employment history doesn't seem to be the time to break out this sort of accusation.
Do you all quit your jobs before you find new ones? What am I missing here?