Research by the internet charity revealed a third of parents believe their child is in danger from the web, while 61 percent claim positive stories about the web are funded by organisations with a vested interest in the net.
Furthermore, one in three reckon the net can "rewire" a person's brain, despite the fact there is no scientific evidence to support these theories.
Annika Small, Director of the Nominet Trust, told The Telegraph: "The Nominet Trust believes in the internet as a force for social good. Exaggerated fears about internet use can potentially deny its benefits to those most in need".
"I want to see a proper debate amongst policy makers, based on accurate research, about the effects of using interactive technologies on young people's brains, behaviours and attitudes, without resorting to scaremongering that parents are being subjected to on regular basis."