If he's a more-or-less harmless guy who just posits this nonsense, play along with it, maybe give him the range info quoted earlier and see what he says about that, but there's no point in confronting this guy about anything - unless he's defaming someone's memory or acting disrespectfully toward them. It's possible he's led a rather humdrum existence and this is the only way he's got of spicing up an otherwise rather drab life.
Worked a case one time where a guy came to our attention from the reader of a metro Chicago newspaper. We had a retired admiral visiting area elementary and junior high schools in uniform (this is allowed for honorably discharged veterans) and talking about his exploits in WWII - you know, the Big One. He was present at Pearl Harbor, saw Coral Sea and Midway, Guadalcanal, and other Pacific battles happen, then went to Europe for D-Day, plus Anvil-Dragoon in southern France. Was in Berlin as a naval rep when it fell, then back to the Pacific for Iwo Jima and Okinawa and was in Tokyo Bay when it all ended. There were some inconsistencies in his accounts that were amusing, and if you crunched the numbers you discovered he was in the USN as a 13-year-old seaman in 1941, and ended the war as a LCDR. Obviously a fraud, but a harmless one. Normally we'd ignore something like this as there's nothing criminal about what he's done - however, supervision was concerned this individual may have tried to use NAVHOSP Great Lakes (back when there was one), the commissary, or other services and defrauded the gov out of those services, so off to his house we go. Went to the door, gave it a knock; I and my partner identified ourselves and stated politely we just wanted to ask him a few questions about him possibly visiting GLAKES. His first words were, "What's the penalty for what I've done?" We calmed him and reassured him we were checking into his possible patronage of the above-mentioned facilities. A previous check of their patient records, prescription lists and other records disclosed he wasn't on any indices, so we figured there was a good chance this was nothing at all. His interview confirmed this. This guy wouldn't shut up about why he had done what he did - he had in fact been in at the end of WWII as an E-1 and made it to E-2 before being mustered out in 1946, and he felt inadequate somehow, that he should have done more. He insisted we take everything he had (uniforms, sword, medals, etc) and we did to make him feel happy; gave him a receipt, too. He said he wanted to come clean about things. We both felt so sorry for him, after putting everything into evidence and briefing the boss, we called a few times in the ensuing days and checked on him to ensure he was OK, and eventually took everything back to him with the (false) stern admonition to not do this sort of thing again. Before we took it back, the "real" admiral in charge of NAVTRACEN Great Lakes wanted to take a look at what this guy had in his wardrobe - he even had a "fore and aft" admiral's hat and boat cloak, and a very nice sword (our admiral said it was better than his own). This was an unusual incident and we briefed him on it. Our impostor had even been rubbing elbows with the real admiral at the Navy Day Ball and associated events at GLAKES for a few years and had so successfully pulled off his masquerade no one at any of these gatherings suspected anything. He still sticks out in my memory. I've wondered what ever became of him.
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