ABSTRACT Familiar information is more likely to be accepted as true. This illusory truth effect has a tremendous negative impact on misinformation intervention. Previous studies focused on the familiarity from repeated exposure in the laboratory, ignoring preexisting familiarity with real-world misinformation. Over three studies (total N = 337), we investigated the cognitive mechanisms behind the truth biases from these two familiarity sources, and whether fact-checking can curb such biased truth perceptions. Studies 1 and 2 found robust truth effects induced by two sources of familiarity but with different cognitive processes. According to the cognitive process model, repetition-induced familiarity reduced decision prudence. Preexisting familiarity instead enhanced truth-congruent evidence accumulation. Study 3 showed that pre-exposing statements with warning flags eliminated the bias to truth induced by repetition but not that from preexisting familiarity. These repeated statements with warning labels also reduced decision caution. These findings furthered the understanding of how different sources of familiarity affect truth perceptions and undermine the intervention through different cognitive processes.