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To secure his safety, as well as that of other students at Hogwarts, Remus would be brought to the Shrieking Shack once a month for his transformations in order to prevent him from attacking other students. 

The Shrieking Shack was located in Hogsmeade and was an old building which had a secret tunnel that led to the Whomping Willow. Remus was brought to the shack by the tunnel underneath the Whomping Willow. The aggressive tree itself was planted in order to keep curious people at bay so that Remus's secret would not get exposed.

However, this isolation caused him to attack himself out of frustration. He was separated from humans so he bit and scratched himself instead This, and the painful monthly transformations, made the villagers of Hogsmeade mistake his screams for that of violent ghosts. 

Dumbledore, wanting to keep the truth of these noises a secret, encouraged these rumors.   Thus, the building was dubbed the Shrieking Shack, which held the reputation for being the most haunted building in Britain.  

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