Supposedly the most famous British atrocity story concerning the Germans during World War I was the "Corpse-Conversion Factory"-rumor; it was said the Germans produced soap out of corpses. A story, which got so well believed that it was repeated for years - without a clear evidence of reality at that time. (
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b., March 3, 1847, Edinburgh
d. Aug. 2, 1922, Beinn Bhreagh, Cape Breton Island, Nova Scotia, Canada
American audiologist and inventor wrongly remembered for having invented the telephone in 1876. Although Bell introduced the first commercial application of the telephone, in fact a German teacher called Reiss invented it.
For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/1/0,5716,15411+1+15220,00.html