Sociologists refer to an episode during which the public or the media express concern or fear from a given agent or threat that is exaggerated, out of proportion to, and less serious than its objective danger or potential damage:

Moral Panic

Explanation:

According to my research on various studies conducted by sociologists, I can say that based on the information provided within the question this term is refereed to as a Moral Panic. Like mentioned in the question this term is defined as an instance of public anxiety or alarm in response to a problem regarded as threatening the moral standards of society. Which is initially announced and exaggerated by the media causing it to spread like wildfire through society.

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