Ya, it's fake. The dir. of the movie was brought up on charges that he actually killed the actors because he had them go into hiding after filming to make it seem more authentic.
Its fake. Those are scenes from a 1970's shock movie called cannibal holocaust by a guy named Ruggero Deodato. The story is a group of people go missing in south america, and then their footage is found 6 months later. Kinda like Blair Witch project.