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ATM Fraud alert

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Heading for Spain soon. Local State Credit Union gave me a sheet which indicates No ATM transactions allowed or Limited Access for a number of countries. Spain is one of the Countries with limited access. I called the Credit Union and they can lift the block but I would be responsible for any fraud associated with the use of the card. They said they did this because of high instances of fraud.
So.....Would appreciate any thoughts you may have on this. Am thinking the best thing may be to just get a couple of thousand euros cash from the credit union (No charge for this service and I can return any excess I have after the trip) Will also use credit card where possible. My wife and I are seasoned travelers and have used ATMs in Turkey and Egypt with no problems. We both wear money belts so am not much worried about pick pockets.

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