OMG, They are still doing the "dancing mickeys" in Taormina!!?? They were doing it back in 1998, when we were there during a cruise stop. One of our friends bought into it too!
Scary about your ATM card. I ahd read that one way they do this is that they place a device , like a card reader , on the machine. It's placed in such a way that you can't tell is there. They even had pictures in the article, and unless you were looking for it, you wouldn't notice!
