The defense to this was to carry dozens upon dozens of nested bags, because each bag opening could trip the pick pocket detection.
Also the defense to your home was to literally circle it in tents/buildings creating an empty courtyard that you could only teleport into with a rune you kept safely in your bank box. There were some warping bugs that would allow you into a courtyard though, or even through the front door (circle of visibility bug, as well as floor tile warping).