Retired woman loses $487K in an investment scam — the Dave Ramsey team outlines her only option to getting back on track

When Cathy called into The Ramsey Show, she was already six months into a nightmare. The 68-year-old admitted she had gotten involved with an “online investment group” and wound up losing everything.

She retired from her job of 36 years and cashed out her entire retirement fund (a 401(k) is an American equivalent of an RRSP) — before handing over US$487,000 to the “online investor group.” Worse, she borrowed another US$50,000 from her brother and he also invested US$110,000 of his own money.

“Last month they ghosted us and froze our accounts, and we lost it all,” Cathy said in a clip from the The Ramsey Show, posted October 16, 2025.

Now, she’s jobless with nothing but the US$2,000 she gets in government benefits each month, which barely covers her expenses. She does have a paid-off home worth about US$400,000, but is US$33,000 in debt with an angry brother who wants his money back.

Devasted, she wanted to know: Where does someone go from here?

Harsh reality check

The Ramsey Show co-hosts George Kamel and Ken Coleman didn’t sugarcoat Cathy’s situation. Kamel's advice regarding Cathy's brother’s demand for repayment: He’s on his own.

“The promises are over,” he said. “You both got screwed in this and you just simply don’t have the money to pay him back.”

As for tackling her debt, the team advised Cathy to focus on generating income rather than take a drastic measure like declaring bankruptcy or tapping into her home’s equity. Cathy says she’s applied for sales jobs — her former professional field — but the co-hosts suggested she expand her search to areas she wouldn’t normally have considered, including jobs in the retail and food service industries.

Liquidating the home should be a last-resort option, according to Kamel. If Cathy finds herself unable to work in a few years, she can sell the property, downsize and invest the difference to create a small nest egg for herself.

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Warning signs of investment fraud

Cathy’s story isn’t unusual, as investment scams are surging across Canada. A report released by the Royal Canadian Mounted Police (RCMP) earlier this year showed that victims of fraud and cybercrime lost more than $638 million in 2024 — a more than 10% increase from the previous year (1).

Investment scams often promise you’ll make big money easily and quickly with little risk to you. “Pig-butchering scams” have become particularly common, where scammers develop romantic relationships with victims over time before suggesting supposed high-return investments, frequently involving cryptocurrency.

The Canadian Anti-Fraud Centre (CAFC) warns Canadians of some investment-fraud red flags, such as (2):

• Guaranteed high returns: No safe investment will give you fast, higher-than-average returns, and nothing is ever guaranteed.
• High-pressure tactics: Scammers stress urgency and demand immediate action to prevent due diligence.
• Unsolicited investment opportunities: Be suspicious of offers coming from out of the blue — even from family and friends.
• Requests for payment through crypto: Scammers prefer crypto for its anonymity, allowing them to fly under the radar.

Check with the Canadian Securities Administrators (CSA) National Registration Search (3) to confirm whether “investment professionals” are licensed and registered. Also, the CAFC offers guidance and tips regarding common investment scams.

What to do if you become victim of a scam

The harsh reality is that recovering money from investment scams is extremely difficult, and many victims never recoup their losses. But there are steps you can take to get back as much as possible.

First and foremost, immediately cease contact with the scammers to prevent further loss. If you’ve given them information to access any sensitive accounts, change those passwords right away and inform the institution.

The CSA and CAFC also recommend the following if you suspect investment fraud:

• Report to authorities: File complaints with the CAFC, your provincial or territorial securities regulator and local law enforcement. This helps authorities track scams and may help your chances of recovering funds.
• Document everything: Keep detailed records of all communications, transactions and related documents. This information can be crucial if authorities or your financial institution take action.
• Find support: Experiencing feelings like guilt, shame, depression or embarrassment is common after a financial scam. Reach out to friends and family, or seek out a support group or a professional to help you cope.

For Cathy, the path forward likely means accepting her retirement, as imagined, is gone. Her best chance for success at this point may be to return to the workforce and practice frugal living.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

RCMP (1); Canadian Anti-Fraud Centre (2); Canadian Securities Administrators (3)