I took my friend’s advice to invest my $180K nest egg in a foreign savings firm. All my money is gone. What can I do?

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In the end, though, your money is gone and you're left to pick up the pieces. Even worse, recovering your investment is often impossible.

Avoiding investment scams

Investment scams don’t just happen to people who are careless or uninformed. They often prey on trust, like a friend’s recommendation, a community connection, or a professional-looking website. And once money is transferred, especially across borders, recovering it becomes extremely difficult.

That’s why prevention is critical. Here are the signs an “opportunity” may not be what it seems:

Guaranteed results: Scammers promise big returns, maybe even enough to quit your job and live a life of luxury. It's important to remember that all investments carry some level of risk.
Little upfront information about the investment: Before you invest money, make sure you understand where your money is going. Ask questions and get the details in writing.
Promise a "secret" method or proven system: Anyone who promises a secret method or easy way to make money without much time or risk is likely a scammer.
High-pressure sales tactics: If someone pressures you to act quickly or discourages you from taking time to research, they're likely a scammer (2).

AI tools are making it easier than ever for scammers to lure unsuspecting victims into their schemes by making their websites, emails and other communications look sophisticated and legitimate. If you're not sure whether an investment opportunity is too good to be true, take the time to research. Verify claims independently and research the company name alongside terms such as "scam" or "fraud." Talk to others in your trust circle — such as family — to see if they spot any gaps you might’ve missed.

Before handing over money, check whether the individual or firm is registered with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

These agencies oversee investment professionals, enforce disclosure rules and maintain public databases of legitimate entities.

If a company isn’t registered when it should be, that’s a major warning sign: Regulated firms must follow strict standards, submit audited financials and allow federal agencies to oversee their activities. Scammers often avoid registration precisely because they don’t want scrutiny.

If you do fall for a scam, report it quickly. Investment fraud should be reported to the FTC (3) or SEC (4). Precious metal or commodities fraud should be reported to the CFTC (5). If your identity is compromised, report it at IdentityTheft.gov (6).

Investment scams are devastating because they mix financial loss with emotional fallout — especially when a trusted friend or family member recommended the investment. Unfortunately, once money leaves the country or lands in an unregulated investment, recovery is rare.

But reporting the scam, warning others and tightening your own financial safety checks can prevent future harm. As losses continue to rise nationwide, awareness and skepticism remain the strongest defenses investors like Michael have, so use them early and often to avoid becoming a statistic.