Urban myths are certainly a sort of folklore

I think the glory days of urban legends have gone, though - since email became universal it's just been too easy to transmit them unaltered. They're still out there, but in much reduced numbers and with much less variety compared to the 70s and 80s - when you'd be convinced after hearing a new tale, not only that it was really true and it had really happened but that it had really happened around here.