Everett, what others I know have done is open a separate checking account for using with PayPal and other online purchases only. When they needed to move money to Pay Pal, out of PayPal, or make an online purchase somewhere, they made the appropriate electronic transfers to or from their main checking account so they weren't exposed like you were when you got zapped for $963.60. Incidentally I feel your pain, I had what I thought was a very secure PayPal password but my account was hacked last Spring for $400 and I was without the money for a good two weeks while they investigated my claim.

Cheers!
Bill