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Urban legends, or (less commonly) FOAFlore (derived from FOAF = "[this really happensd to a] Friend Of A Friend"), are part of our cultural heritage.
They're similar to the classic Ghost Story (see !REDRUM for more on those), but it's important to recognize the difference: namely, that these occur in developed communities, rather than just anyplace.
Urban legends often involve unstable individuals running amok, surprising circumstances, incredible technology, or maybe even the dreaded "Email Of Doom".
We've all got favorites, but for those who are looking to get more familiar with the genre: you're spoiled for choice. Just dive in anywhere you like.