Paypal / unsecure site
I am in the process of cleaning up $12, 500 worth of airline tickets charged to my Pay Pal accounts. This included debit, credit card and the bank checking account tied to PayPal. Not the first time I've had to deal with fraud through Pay Pal.
My computer has good, current virus and spyware on it. The 'geek squad' at Best Buy found no planted keylogging program/virus and they just guffawed at the lack of 'security' on the PP site. Their comment was it is "not safe, no matter what they say".
Last year someone hacked into Pay Pal and listed hundreds of individuals' names, socials and credit card# w/security codes onto 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 Pay Pal. Let Ebay know what the concerns are as they are starting a new "policy" around the end October 2008 not allowing sellers to list any payment option other than Pay Pal. This is not out of concern for buyer/seller safety, it is only another way for them to get more money in their already deep pockets.
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