I wouldn't call it exactly scary -- no one jumps out at you (well, except once, and nothing comes of it), no one chases you, and there aren't any bodies or anything like that -- but one of the characters is quite threatening, or at least everything he says is threatening. In the real world I'd avoid him like a flaming boulder. In this game, however, the scariness is in what he says he's going to do, not in anything he actually does.