The placement of children in foster or residential care does not ensure that children will be safe from abuse or neglect. The incidence of out-of-home maltreatment, especially sexual exploitation and abuse, has given rise to new community expectations and legislation which has placed the protection of children in alternate care squarely in the hands of the child protective system. These investigations differ in purpose and scope from familial investigations, and the current protective system is without adequate preparation, policy, and procedures to perform them. This paper discusses the differences in familial and out-of-home care investigations in relation to identification and reporting, assessing risk factors in the initial report, evidence gathering, essential components of the investigation, levels of culpability and corrective action approaches. The authors suggest that specialized investigation units may be more suited to these investigations than traditional child protective services.