Silent Hill 2
Penumbra
Call of Cthulhu : Dark Corners of the Earth ( More interesting than scary)
Those games are highly rated for their scary factor. Silent Hill 2 espically is one of the most freaky, sad, tear jerking, and disturbing games ever. It also has great music and a ground breaking story, so if you want a good game overall with lots of fear, Silent Hill 2 is for you.
Penumbra Black Plague and Overture are incredibly scary. This game has less of a story, but makes you feel like it’s YOU who is playing. I can tell you strait up, this is the only game that made me fall out of my seat with fear. Remember it’s jump and “HOLY SHIT WTF?!” scary, so this game is if you think you’re tough shit.
As a Lovecraft lover, I can surely tell you that Call of Cthulhu is the greatest Lovecraft game there is. It - like Penumbra, is an FPS. This takes place in the 20’s, has decent graphics, and features very spooky atmospheres and lots of Lovecraft monsters, like Dagon, Flying Polyps, and Yithians etc. This Also has a great story, but you need to pay attention in this one. This is by far the hardest game on this list.
Hope I helped. All of these games but “Silent Hill 2” are on steam, but I highly recommend finding the old PS2 and giving it a try - It’s my favorite on this list. These games are sure to get your skin crawling at one point or another. Have Fun