This technique was first theorized and practiced by CIA in Europe (and likely KGB elsewhere) during the Cold War. In Italy they called it "Tension Strategy", as in "keeping people tense" with fear of attacks and bombs so they will allow the government to get and maintain illiberal powers or even allow a Chilean-style coup d'état.

During the Troubles, the UK had its fair share of "freaking out", banning public bins (only recently re-introduced), criminalizing the Irish community, and basically allowing police and military to do whatever they wanted in Northern Ireland (with lots of abuses being recognised and pursued only today). A famous Irish comedian joked a few years ago that he loved all Muslims, because they've now replaced the Irish as standard bogeymen ("... and now us Irish are just those funny people from Riverdance!").