People do get fired for lying on their CV, the guy I replaced when I joined my current employer was (said he had various qualifications and skills like SQL, but then used to go and get other people to write queries for him).
Having said that the key to what turbotoaster is saying is "if im going for a job im not qualified for but i know i can do it, or learn it within a short space of time", I'm sure there's plenty of people out there who are capable of doing certain jobs but because they lack the experience/qualification they can't get their foot in the door. Just because someone has experience doesn't mean they are necessarily better than someone who doesn't, you could be naturally gifted or inclined towards something you haven't done yet. I'm better at my job than some people with more experience than me, because I'm great.
Anyway going back to the OP I'd say you need to do something about it, maybe the "outdated CV, oops!" line would be the best. I definitely wouldn't pretend you still work there because when they contact your 'current' employer for a reference and confirmation of dates, it will unravel.
My 'advice' if you can call it that with regard to BS on a CV would be that it'd probably much easier to get away with exaggerating technical experience within a given role than it is to invent things which aren't true and can be proven as such in a black and white fashion (employment dates, qualifications). Very few employers will actually test you on a technical level, which is a shame.
Having said that the key to what turbotoaster is saying is "if im going for a job im not qualified for but i know i can do it, or learn it within a short space of time", I'm sure there's plenty of people out there who are capable of doing certain jobs but because they lack the experience/qualification they can't get their foot in the door. Just because someone has experience doesn't mean they are necessarily better than someone who doesn't, you could be naturally gifted or inclined towards something you haven't done yet. I'm better at my job than some people with more experience than me, because I'm great.

Anyway going back to the OP I'd say you need to do something about it, maybe the "outdated CV, oops!" line would be the best. I definitely wouldn't pretend you still work there because when they contact your 'current' employer for a reference and confirmation of dates, it will unravel.
My 'advice' if you can call it that with regard to BS on a CV would be that it'd probably much easier to get away with exaggerating technical experience within a given role than it is to invent things which aren't true and can be proven as such in a black and white fashion (employment dates, qualifications). Very few employers will actually test you on a technical level, which is a shame.
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People like Turbotoaster who are blatantly lying to get jobs they are not qualified to do is a major factor as to why the public sector (and a significant proportion of the private sector) is appalling.