The South Pacific Island that doesn’t exist
by Google Earth Blog on Nov.26, 2012, under 3D Models, Argentina, Australia, Brazil, California, Denmark, England, Germany, Google Earth News, Google Earth Tips, Google Sky, Google maps, Hawaii, Indonesia, Ireland, Italy, Japan, Kenya, Mexico, Natural Landmarks, Netherlands, Sightseeing, Street Views, USA
For years, "Sandy Island" has shown up in various maps and marine charts, including Google Earth and Google Maps. Scientists were confused, because their records showed a water depth of 1400m at that location, so they went to check it out. As they suspected, the island doesn't exist.
There's no telling how the island first appeared on maps, but it's apparently been on scientific maps (and subsequently Google Earth) for many years. Here's how the island currently appears in Google Earth:
It will likely be fixed in Google Earth very soon, but in the meantime you can view it by using
this KML file. 
For more, check out the full story on the BBC website.