WorldCom the #2 long distance communication carrier in the United States has been in news lately because of its fraudulent practice of disguising approximately $ 3.8 billion in expenses, which resulted in fictitious profit earnings. WorldCom internal auditor Ms. Cynthia Cooper blew the lid on this accounting practice. The $ 3.8 billion fiasco at WorldCom coming after the fall of power giant Enron has considerably eroded the investor's confidence in big corporations and government regulatory bodies have called for more transparency in account reporting. The modus operandi employed by WorldCom to fudge its account was quite simple in 2001 and 2002 the company pretended that $3.8bn (£2.5bn) in normal operating expenses - in fact, routine maintenance - qualified as investment. That allowed the company to spread the cost over a number of years, instead of having to account for it all at once. According to businessweek the fall of WorldCom will kill the competition. Some analyst have expressed the opinion that WorldCom can make a recovery because they have considerable assets to set of their losses but on the other hand they have cautioned that the price of these assets are at its lowest. This report profiles the company and discusses the implication it had on the market and economy, the future of the company, recovery strategies being adopted as well as what the industry analyst now think about the company.