A scareware is a manipulation that makes online users think that they need to buy a product that is useless, bad, or malicious. If I want to explain it a bit easier a scareware is just a scam that usually is in ads that pop up showing a product that makes you want to buy it.
For example, you see a product that makes you want to buy it and it manipulates it and makes you scared and you hand over your confidential information.