There is actually one FTO where your money is 100% protected - Western Australian Aviation College.
WAAC are required, by the Australian Government, to have a set of insurance policies that guarantee to pay back money to overseas students in the event of WAAC folding. Then, if the insurance company were also to go bust, the Australian Government itself will refund the student or arrange for the student to complete the course elsewhere at the Aussie Govt. expense.
This system was introduced some time back after a number of educational establishments (not FTOs) went bust and a large number of overseas students lost a lot of money. Oz started to get a bad name, particularly in the Far East, so protect its market in OS students this scheme was introduced.
Of course, this does mean you have to go to Oz!!