According to the study, headed by a skincare products manufacturer, the rise of online social networking and net access is causing teens to lead double lives.
More than half of the 1004 teens interviewed, between the age bracket of 13-19, said that they fabricated their appearance and lied about their age to try to seem cool and make more friends over the World Wide Web.
"It's a lot easier to be confident online when you don't have to worry about your weight or your looks," the Herald Sun quoted Madi Busch, 16, as saying.
Adolescent psychologist Dr. Michael Carr-Gregg said that the findings showed that many teens were "making up their profile photos to look better".
He said: "Many are living a digital lie and should be careful in case it comes back to bite them later on."