Scandal is disgraceful events or nasty gossip about people's private lives, like the scandal that erupted when you were seen at the mall with your best friend's girlfriend.
Just because there's a scandal, it doesn't mean it's always true — being seen with your friend's girl? What the gossips didn't know it that you were buying his birthday present. Some scandals, though, involve public figures who have been found guilty. For example, if a politician is found guilty of taking bribes, that's a scandal that will rock your town, causing outrage not to mention the end of that politician's career.