More or less, though in this case with some actual incidents as the basis, in a sense. Actually, two of them.
In Germany, there were two murders (one in 1993 and one in 2001) that were highly scandalised and talked about in the media for months, both (among other things) because they were quickly labelled as "satanic murders", even by the police.
I'm a bit too young to really remember the aftermath of the first one, but those two are the reasons the "Satanic Panic" got a nice revival from the mid-90s to the early 00s in Germany (well, roughly until 9/11 because then there were less silly things to worry about).
On 29 April 1993, three members of the German neo-nazi Black Metal band Absurd (who were all still in high school in Sondershausen, Thuringia) murdered one of their fellow colleagues, probably because he really wanted to be part of their group but they didn't want him. Black Metal, murder and neo-nazis rings a bell? This murder actually predates the much more (in)famous one, i.e., Varg Vikernes of Burzum murdering Euronymous (or Øystein Aarseth) of Mayhem by a few months.
Obviously, all of that has nothing to do with satanism, especially because Absurd aren't one of the "satanic" Black Metal Bands (as in: bands with lyrics about that topic). If only they were.
But who cares about all these details? Satanists were a thing in the media now and all of that always lingered in the background (Varg didn't help, of course). Then came 2001.
On 6 July 2001, Daniel and Manuela Ruda (a couple) lured one of their work colleagues into their flat in Witten, North-Rhine Westphalia and stabbed him 66 times, hit him with a hammer and used a machete to cut off his head. Allegedly they had sex beside the corpse afterwards, but that could just be part of their story (which I'll come to soon).
What followed was a week-long chase after "satanists", because beside the mangled corpse, police found inverted crosses, skulls, a coffin and the phrase "When Satan lives" (in English) on a window in the flat. They were finally caught in Jena, Thuringia, some 400 km from the scene of the murder.
What followed now was probably one of the most sensationalised media campaigns about a murder in Germany's younger history. Now, the reason why this murder was called "satanic" wasn't all that far-fetched. After all, the murderers actually tried to perpetuate every stereotype they could think of. Them having sex next to the murder victim wasn't part of the investigation, they said so of their own volition. They also claimed to be vampires (i.e., drinking each other's blood, which is probably true).
And then there was the music. No, they weren't in a band, they just liked music. And no, this time, it wasn't a metal band, though at least one public broadcaster(!) called it that in one of its shows.
The Rudas liked ":wumpscut:", an Industrial act that was pretty influential in the Goth scene of the late 90s and early 00s. At least in Germany, the Goth scene was pretty big during that time (and AFAIK, is still more active today than elsewhere). Well, you know what followed.
That public broadcaster show calling wumpscut Black Metal? That was the least of this report's problems. Unfortunately, it's no longer to be found on the web (at least as far as I know), but the whole thing was what has to be one of the most vile pieces of media ever produced on a, all in all, very "harmless" subculture.
It starts with "Good evening, ladies and gentlemen. There are people that live as if they were already dead" and it only goes downhill from there. "[...] they worship everything diabolical. And sometimes, they confuse their bizarre death fantasies with reality. A gruesome murder in Witten suddenly shines a bright light on a part of our society in which superstition, hate, sadism, and nazi-worshipping are united in a murderous mixture."
Yeah.
The guy behind wumpscut reacted in his own way to the craziness surrounding his project in mid-2001: he took lots of samples from that report, put some other stuff around the murder (police press conferences etc.) in it too and made it a song -- called "Ruda". This is it, but unfortunately, unless you understand German, this will tell you very little:
Yes, the pictures in there are all of the murderer couple or related things. That's not done by wumpscut himself and I don't really like it, but it's the only source of these snippets still available. OTOH, Varg Vikernes was turned into a meme, so maybe that's just the way it goes.
Okay, that's a nice story, but how was I affected by it?
Well, in 2001, I was in high school in a city not that far from Witten. Of course, that "satanic murder" made quite an impact. We discussed it in class, actually, followed by a general discussion on "satanism" (lol). There was a talk show on some trashy TV channel (yeah, even trashier than the one mentioned above) that had a moderator pitched against some "satanists" (who just looked like metalheads to me) which we watched in school. At least at the end, everyone including the teacher(!) agreed that the "satanists" easily won the debate.
Also, I was in a phase were I discovered my own tastes, among other things, in music. Some "Black metal band" (lol) that apparently could turn you into a murderer? How exactly was that supposed to work? Well, I always loved to experiment, so I experimented on myself. And I'm happy to say I still haven't killed anyone (gruesomely or otherwise), but the music and general "subculture" has stuck. I wouldn't really call myself a Goth but I don't mind if other people do so. It's mostly "Metal guy" nowadays anyway because sadly (or maybe gladly), the Goth scene isn't really on people's minds today, even if it still exists here, as I said. I probably listen to more Metal today than really Goth-y stuff, so that fits the bill equally as well.
My parents are both atheists and thus never took any of the satanic stuff seriously, so I only encountered all of that at school.
