Dear Carroll, Theft has indeed gone up in downtown Athens, especially around Monastiraki Square. What I have been hearing - several times now, both directly from victims and as "it happened to someone" anecdotes - is that a group will sit down somewhere, on a bench or at a table, and one of the women will discover her purse is missing from being looped over the chair back or set down on the ground beside her. In the cases I've heard of directly, purse and person were separated first.
I recommend keeping bags under the table at your feet (ie up against the table base) and to choose a table against a wall if possible. (Resting your feet on your bag can be quite comfortable and refreshing, by the way.) At public benches be especially careful as this seems to be where most thefts take place. It's not a random crime of opportunity - it's a few people earning a living doing this, so they're good at it. You might consider getting a security-oriented bag or backpack like the ones offered by PacSafe, included in my Travel Gadgets for the Paranoid Traveler list. But, all in all, thefts are rare. Athens is still one of the safest world capitals. Use common sense and some minor precautions, but you'll have a great time in Greece!
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