Happened to me in the middle of the night when someone "overseas" cracked what I thought was a secure password. Three purchases were made to the tune of $409 but fortunately Pay Pal's computers flagged the transactions as suspicious and stopped the transactions and froze my account. Unfortunately the funds were still drafted from my checking account but fortunately it was only $409. Had it been more it could have put the kibosh on our spring break trip to Galveston. It has now all been reversed and the funds are in the process of being transferred back to my checking account.

Lesson learned; open a separate checking account for use with your Pay Pal account only that you can transfer funds into on an "as-needed" basis.

Cheers,
Bill