Well I believe truth is first. If we speak the truth we rid our fears.
We hide so much when we lie (we have all spoken lies, no one is without sin), we cant remember one lie to the other. So we tell more lies to cover up the other ones. When a lie is told so many times, it becomes the truth in the liars head after so many times.
I think we have all told little white lies (probably still do) to prevent to hurt someone we care about or for the fact of fear as you mentioned. However if we tell a lie to avoid fear then the fear becomes bigger.
Some one (a performer) once said.."the lie becomes the truth, these words were in one of his songs actually. Needless to say that lie for him did become the truth in his head that it filled him with deceit/hate and loneliness. He had to buy friends, and he lost the will of God.
When we try to cover up a lie, we feel guilty and then that guilt turns into fear of getting caught. So any way you look at it, truth is best.
However when you believe your lies, you become your worst enemy, which in turn leaves you feeling lonely, miserable and hurt.
God is truth and if you believe in God and follow his guide he will give you the strength to turn away from fear.
You can only live in fear or faith you cannot live in both at the same time.
So I would have to say people who lie out of fear, are not really the problem, the problem is the lie they tell to rid the fear. They may not realize that this can be very hurtful.