I am currently involved in an ugly situation with my Paypal account. Fraudulent withdrawls have been made on my account: money is being taken directly from my checking account by an internet phone company (sister company to Ebay).
What is troubling is I never gave anyone authorization to draw from my checking account. The only reason Paypal has the account on record is so I can transfer any Paypal balances to my checking---otherwise the money is stuck in Paypal, inducing LBA for sure!
But more seriously, this is a horrible situation. It is under investigation, but it is scary how little Paypal seems able to help me. I do not think I will do business with them or Ebay again. I had no idea how vulnerable I was to internet fraud.
Heads up! Paypal says my password was stolen--change your passwords at the very least.