I am in the process of cleaning up $12,500 worth of airline tickets charged to my PayPal accounts. This included my debit card, credit card and the bank checking account tied to PayPal. It is not the first time I have had to deal with fraud through PayPal.
My computer has good, current virus and spyware on it. The "Geek Squad" at Best Buy found no planted keylogging program or virus, and they just guffawed at the lack of "security" on the PayPal site. Their comment was that it is "not safe, no matter what they say".
Last year someone hacked into PayPal and listed hundreds of individuals' names, socials and credit card numbers with security codes on a discussion board thread on eBay. Every few lines he stuck in "wheeeee!" I saw this myself, yet eBay/PayPal (one and the same) covered it up and denied there was anything to it.
I would recommend NOT using PayPal. Let eBay know what the concerns are, as they are starting a new "policy" around the end of October not allowing sellers to list any payment option other than PayPal. This is not out of concern for buyer or seller safety. It is only another way for them to get more money in their already deep pockets.
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