Facebook, Twitter and TikTok are among the firms working to provide links to accurate information.
The number of posts containing misinformation about the spread and alleged cures for the coronavirus has soared.
So far more than 250 people have died as a result of the outbreak and cases have been reported in 22 countries.
The World Health Organization (WHO) has declared the coronavirus a public health emergency.
Most social media networks have rules banning the posting of hateful or defamatory information. But following a backlash against firms such as Facebook and Twitter for allowing fake news to spread during the 2016 US presidential election, networks began taking action.
False information on social media has led to mob violence in several counties and has also helped spread unfounded fears about the safety of vaccines.
Social networks are now facing pressure to ensure their platforms don't incite panic or cause harm as authorities try to address the coronavirus outbreak.
So what are they doing?
Facebook says it will limit the spread of false information about the coronavirus by removing "false claims or conspiracy theories".
In a blog post, Facebook said it would use its existing fact-checkers to review and expose misinformation. The firm also said it would notify individuals who had shared or were trying to share information that had been flagged as false.
Facebook said it was focusing on "claims that are designed to discourage treatment" including posts about false cures.
One post from the Philippines advised Facebook users to "keep your throat moist" and avoid spicy food to avoid becoming infected with the coronavirus. That post was shared over 16,000 times and had over 400 comments.
Instagram - which is owned by Facebook - is also blocking certain hashtags linked to the virus.
Facebook-owned messaging site WhatsApp has had difficulties in combating false news in the past.
Last year it announced measures to prevent users from forwarding messages to more than five people or groups. It also adds a tag to heavily forwarded messages. In some places such messages have been linked to sparking mob-violence.
Twitter said there have been over 15 million tweets about the coronavirus in the last four weeks.
It launched a prompt that appears when users search for coronavirus encouraging them to use official channels - the World Health Organization or Centres for Disease Control - for information.
When Twitter users search for coronavirus a large headline with the title "Know the facts" appears