All of Europe and UK is crawling with thieves, pickpockets and gypsies. They are everywhere and you get pretty good at being able to spot them if you pay close attention. Rick Steves does have a lot of information about how to avoid them tips, scams to avoid, money belts and so forth.
My first experience was in Paris. I was in a souvenir shop and the owner stopped a group of about 5 people from entering her shop. She was speaking very quickly and with great intensity so I could tell she was none too happy. They left and returned in about 5 minutes and tried to enter again. She chased them off. When I got to the register to purchase my goods I asked her what happened and she explained that they were gypsies and that they steal from her customers and from her and then sell the items at the Eiffel Tower. She told me to never, ever buy anything from someone on the street because the items are likely to be stolen. These people had a very distinctive look.
As I moved further south in France and then into Italy the occurrence of gypsies increased dramatically. In Milan my tour guide pointed out two young women to us and said that they were gypsies. She instructed us to zip up our purses and for the men to put their hands over their wallets. As they approached us she turned to them and said something very sharply to them and motioned for them to leave. They walked away and literally, within 4 minutes they were back wearing different jackets. As we left the Duomo I saw the two women looking very intently at a new tour group and then as that group walked by the two women melded into the crowd and jostled a few people. About 10 minutes later as we left I saw them leaving walking at a very fast pace. My tour guide said they obviously got someone's wallet.
I saw the exact same 2 girls (and the older woman - she was carrying a large purse/tote bag that probably contained the change of clothes) at the train station. When trains come into the station, they get on it as soon as it stops. They usually target the first class coaches and first they look for fancy bags and luggage, then they go into the coach and crowd people to distract them. This is one of their favorite techniques. I met people who had wallets stolen from their front pocket, from a cargo-pants pocket, out of a purse, purses that were stolen, cameras, video cameras, and the list goes on.
They travel in packs of 2 or 3, always women between ages of 15 and about 30. They love to get on the metro/subway, buses and to hang out in tourist locations. When you see women standing around looking at people intently be on your guard.
I've seen them be chased off of trains, by police, and locals. I saw a gypsy steal some men's clothes from a clothing store. I saw the gypsies waiting until the very last minute, jump over the turnstile and get on the metro just a few minutes before the doors closed and then the metro security guards came over and warned people to zip their purses and hold on to their wallets. These are just a few stories I saw a lot of other things.
The other main way of being ripped off is by people in eateries. I can't tell you how many times people tried to charge me more for an item than what was listed. When you order something, even just a pastry or little panini, always say the name of the item and the cost. They tried to get 4.50 euros from me for a mini-panini listed as 2.50. When I asked why it costs more they said "it costs more to heat it for you". I declined and walked out. Once a women tried to charge me 5.50 euros for a can of coke, which I knew only costs 2.50 euros at any other place. I finally lost my temper once in Florence and told off the proprietor. From that point on I avoided any shop run by a women who looked like she was the mom (or a mom's age) with 1 or 2 younger women working there. I never had a problem with men at an eatery. However, I did have some trouble with a man at a produce stand once. No matter where you are ask what the price is as you go along.
"Two bananas, how much?"
"One water, how much?'
Like that, otherwise he will ask for 6.50 euros for 2 bananas and a water. If you don't like the price just walk away.
You cannot let your guard down for one second, in Italy especially. Rick says it's an albeit sad thing but just part of the experience. I found it down right annoying to have to be guarded all the time.
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