I enjoyed your description of "hugger muggers" & here's another tactic used on my husband a number of year's ago in Girona, Catalunya. He was walking alone in the old city (the Barri Vell) on evening. The streets were fairly busy. He felt something hit his neck, not painfully but enough to be aware and he stopped walking and looked to see where it could have come from. Almost immediately a group of four young adults, men & women, rushed to help him, dabbing at his neck to clean whatever had landed on him and generally fussing and appearing to be trying to be helpful.
After a time he expressed his gratitude as one would and went on his merry way after first checking that he had everything only to discover later, much later, that his wallet had been removed and replaced but crucially without one of his credit cards! It had been used that same evening in a well known jewellers in the city. Whoever it was were treating themselves very generously and other charges like phone credit went on the card as well.
When he reported the matter to the police they told him it was a well known ploy commonly used by Brazilians (it's never by Spaniards of course) & I was told the same thing by the police when I had my bag snatched in Alicante a few years previously. "0h yes, it's a common occurrence carried out by Columbians" they knowingly told me to which I replied "well, if you know who they are why don't you go and arrest them" on that occasion we were sitting on a park bench drinking water and one guy created a distraction which caused us to look & while we did his accomplice helped himself to my bag.
We get over such upsets but hopefully my story will alert people to be vigilent.