It's subjective whether they are trying to scare you or not. They are legally going after what is due them: rent + late fees.
The security deposit cannot be used for rent on your end even though in some states, the landlord can use deposit monies to pay for back rent. It is different. If they have to go that route, they can still evict you.
What has to happen is that you have to pay the back rent in full, move out and wait to get your security deposit back.
Understand?

