How can PHP handle file names with special characters like umlauts when reading directories?

Special characters like umlauts can cause issues when handling file names in PHP, especially when reading directories. To handle this, you can use the `utf8_encode()` function to convert the file names to UTF-8 encoding before processing them.

$directory = 'path/to/directory';

$files = scandir($directory);

foreach ($files as $file) {
    $file = utf8_encode($file);
    // Process the file name here
}