We were told before getting off the bus in the Catedral area to watch out for the gypsies... they might try to surround you and try to get you to buy whatever they are selling. There also are children involved and you should be careful with your money if they are close by. This is pretty much what you should watch for anywhere you go....the cast might be different, but their aim is the same, to get your money one way or the other while you are not paying attention!
The only thing that you have to be careful with are the gypsies that want to sell you a small bunch of herbs that is supossed to give you luck or want to read your hands. They are very persistent, tell them seriusly that you don't want their services, don't show any interest or they will follow you all the time.
Around the Cathedral there are a lot of Gypsy women who put sprigs of Rosemary into you hand and then demand money. This only happens around the cathedral. Don't let them put anything into your hand. Don't be embarrassed to drop the rosemary onto the floor if necessary. Just ignore them and say 'dejame en paz' (leave me alone) if they persist. What they are looking for is someone who is too embarrassed to say 'no'. This is not a dangerous situation.
Watch out for the little ladies who are on the sidewalks with the olive branches who want to read your palms and then get money from you. At first they may seem sincere, but they are really out for the almighty dollar!
Look, the gypsy women are cons. That's the reality. They try to give you sprigs of herb, and then demand 1000 pts for the pleasure. They slur their words so you, the unkoowing tourist, pull out your wallet. They grab the money and run, while you're still trying to figure it out. They're everywhere in Granada. Everywhere.
Be very careful of the gypsy women. Do not stop to talk to them and avoid them at all costs. They will give you a sprig of lavender and ask only a small amount of money for it. While you dig for the money , they confuse you by not telling you exactly how much they want. Then when you get your wallet out later all of your cash is gone. They are very quick and all dress alike so you cannot report them to the police. My sister-in-law lost a lot of money to them so be wary! (or be insured!)
Though Granada is a quite safe city watch out in the busy places, particularly around the Cathedral. There are pickpockets here.