By the way, another tip on if someone DOES ask to see your passport.

No one has said that this has happened yet, BUT since some of you are not only handing over your identification, but also money to be 'checked' you should be aware that:

By Spanish law, you need to have identification on you, if you're a tourist, this means your passport. So, if they say their taking it away from you- that's ILLEGAL! To do that, you'd have to go to the police office with them! Don't loose sight of it! A real officer won't just walk off with your passport! PLEASE keep that in mind!

Oh, and don't tell them the name of the hotel you're staying at! Unless you've had to go to the police department and fill out a form for something, (in which case you know they are real police) don't tell anyone except people you know where you're staying! I had 2 friends in NYC followed to their hotel, they didn't have any way around it... but this could be dangerous. My friends should have ducked into a cafe or something and gotten help, but they were pretty young at the time, and their first time to the big apple, they could have been put into some serious trouble!

Also, in the event of a lost or stolen passport, even the embassy's will suggest that you keep a photocopy (or two) with you. One to keep in your hotel room, and another possibly with your family back home. You'll be surprised how much this will help you should you find yourself having to apply for an emergency passport to get back home!

Be safe everyone! And have a GOOD vistit when you go!