"Schein-" as a prefix in German means something that appears to be one thing but isn't what it appears to be. Depending on context it can be analogous to the English "sham", but the later has a more negative, manipulative connotation, whereas the German "Schein-" connotes a more neutral and complex confusion of reality and appearance.
It's pronounced exactly like the English "shine", so say "shine-bug".
That's an old one we used to use...