How the scam works:
If you are visiting, let’s say, the Coliseum in Rome, you will most likely have to stand in line for about 15-20 minutes, on a good day. The line is compact and thick (4-5 people wide) and slowly advances, as everybody is mesmerized by the overwhelming construction.
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Almost everybody looks up to the walls and arcades. The tourist beside you has a backpack, wears a football shirt, and seems to be just as interested as you are in the Coliseum. He might be even snapping pictures. While he is constantly looking up to the stones, taking pictures with his left hand, he may use the backpack as a buffer between you and him, just so he can operate with his right hand.
Trust us, you won’t feel it, because you don’t pay attention to him. Remember, these guys pick pocket several times per hour and their fingers are just as accurate as the surgeons’.
The most popular cities in the world for pick-pocketing are: Naples, Rome (Vatican, Colisseum), Venice (San Marco Square), and Barcelona (Las Ramblas area).
How to avoid:
Never place your wallet or cash in side or back pockets. Try the inside chest pocket and, if you have zippers, it’s even better.
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Pickpockets will often work as a team of more than one person, like two or three or more, and could be elderly men or women or even a bunch of young children. They will do anything to block your path, create a distraction, divert your attention as another of their team picks your pockets. As soon as your path is blocked or people try to divert your attention, turn in a complete circle to see who or what is going on around you. Be especially alert on trains, buses and subways that will be crowded, and even there, keep rotating around, don’t just stand facing one direction all the time. When you get off the train, bus or subway, step to a clear area and wait for the main crowd to move on. The pickpocket will be the one who does what you do, or follows you. Keep a dummy wallet with a few small bills to make small purchases so the pickpockets don’t see where your real money/cards are hidden.
Also, make sure you know how much change you are supposed to be getting back from a purchase in any shop or tourist area, and count the change you get back. You will often be short "one dollar", I have even been out $19 as they slipped in a $1 instead of a $20 when my change was counted back.