Chinese whispersと言います。これについては地域差があるようでplay telephone, whisper down the alley, whisper down the laneのどれかで理解されます。話に尾ひれ背びれがつくはget distorted and exaggeratedといえばいいでしょう。
http://www.youtube.com/watch?v=WdU-UtEJEIA 7:13 what the English call Chinese whispers and the Americans call Telephone
練習問題解答
a-1042 a game of telephone
a-1500 a game of telephone whispers
a-7639 a game of telephone
b-3083 such an obvious game of properganda telephone
b-4539 game of telephone