I find it hard to believe when I read that people go out at night with their wallet in their pocket. I've even heard of women daft enough to take their passport and all their holiday money out with them in their handbag! I take take enough folding money out to last the evening and no more. That is kept in a buttoned or velcro sealed pocket. Of course, thieves can razor the bottom of the pocket, but if they don't see the bulge of a wallet they probably won't bother. If I do get robbed it will obviously pee me off mightily but it won't completely wreck my holiday!
I don't expect to be the victim of a crime in Spain any more than I'd expect it at home. The reason for taking precautions is because the consequences of being the victim of a crime are so much worse.
Police in a town like Benidorm spend every night dealing with the lowest end of British society. It's understandable that they don't welcome us with open arms when we have a problem!