Been there and suffered the same fate. I go to Cairo almost every month and found a great way to prevent all this from happening.
We get the handling agent to make all the hotel reservations/transportation/transactions and pay them with their account or credit card, they then invoice us upon departure and we pay them cash as we leave from the aircraft impress. They love cash!.
I have yet to hear them ripping off their own folks but at least we are ok
We always stay at the JWM and have never had probs with the ATM there.
Cheers KW