
While it is craftable after unlocking the Advanced Armor perk, Scaled Armor is one of the few armors you can improve to "Legendary," making it far more defensive than any Light Armor tier sets until you unlock Glass Armor. Scaled armor can be crafted in the steel section of the forge menu. The required materials to craft it are Corundum Ingots, leather, leather strips and steel ingots. Scaled Armor can be crafted at a forge with the Advanced Armors perk, which is available with a Smithing skill of 50 or above.
Higher level bandits (at least 20) commonly wear this armor. Scaled helmets are often found being worn by Stormcloak soldiers during the Civil War questline, regardless of level. Since there are no nearby witnesses, she can easily be killed without gaining a bounty.
A pilgrim named Karita on the way to High Hrothgar wears this armor, even at lower levels (at least level 10 and up), as well as a quite valuable circlet.
He can be hired, killed, the money retrieved for no bounty whatsoever.
Vorstag wears scaled horn armor as well as the bracers and boots at the Silver-Blood Inn. An easy way to obtain Scaled Armor early on is by killing Fultheim the Fearless during the Dark Brotherhood quest " With Friends Like These." He always wears the cuirass, bracers, and boots, regardless of the Dragonborn's level.