Went there when I was 18 with my mum. We were staying at a bargain bucket youth hostel, so had to take the passports with us because the office safe was broken. Had just crossed the border into the Vatican, and were in a big crowd when some sort of fight broke out. When we got out, my mum found out someone had snipped a hole in her bag and stolen her purse and the passports. Obviously it was all a distraction so the monks could steal wallets to keep the Pope in style.
The embassy were incredibly unhelpful, and to get a temporary passport we had to get a police certificate. As it happened in the Vatican though, we got sent to four different police stations to get the right paperwork (ah Italian bureaucracy), and had to walk between them because the embassy wouldn’t even give us some change to help with the bus. Called my sister and got her to wire us some emergency money, but it took a few hours to arrive. While doing all this messing about, someone crossed a border with my passport before it was officially cancelled.
So then it took me nine months to get a new passport, as they had to investigate that I hadn’t sold it. So I started university with no ID other than my birth certificate for a couple of months, which was even more handy. Every time I went through immigration even within the EU for years something would come up on screen and I’d get extra checks and questions. That + the fact I had Moroccan ferry stamps that are only in Arabic made it a very bad idea for me to even attempt to go to the US seeing as it was also the height of the Bush era. My passport’s fine now, but still haven’t been to the US despite having family there.