The WorldCom accounting scandal emerged in 2002, unveiling how the telecommunications giant falsely inflated assets by over $3.8 billion, marking one of the largest accounting frauds in U.S. history. The scandal culminated in WorldCom's bankruptcy, then the largest ever, disrupting financial markets and investor trust. It prompted significant regulatory changes, including the enactment of the Sarbanes-Oxley Act, designed to enhance corporate governance and accounting transparency across U.S. corporations.