I take an opposite approach to pickpockets. Give them what they want!
When traveling, I keep my wallet and ID in a secure place such as a money belt. However, in my back pocket, I have an old wallet filled with sample credit cards that come in the mail. Of course, I only use the cards that do not have my name on them. Additionally, my son had some play money that looked perfectly real on the front but was blank on the reverse. I stuffed a couple hundred dollars of this fake stuff in my wallet too.
Ironically, this wallet has gone on many trips with me... just begging to be picked yet it never has! If it ever does get picked, I would pay real money to see the look on the gypsy kid as they run around the corner and into an alley to check out their prize.