ERD50,
I am not hearing every single day or week that my bank is being hacked or someone is using any of my credit cards.
Cars and wallets are stolen every day. Houses are broken into everyday. DO we stop using these?
If you don't feel comfortable with eBay or PayPal or anyone else, stop doing business with them. That is your right.
I just think your idea that the security problem lies with PayPal is a bit misguided. What is happening in all the stories I've seen, is that the 'bad guys' are STEALING your password/login FROM YOU (not from PayPal). Think of that password/login as the 'keys' to your account.
If someone steals your car keys, do you blame the car manufacturer or the car dealer? No. You blame the 'bad guy', or maybe yourself for making your keys accessible. So, why blame PayPal when someone steals the keys to your account?
If someone steals your wallet, do you blame the US government for making currency that requires no identification to use?
I think the correct way to look at this is:
A) If you have a computer that is susceptible to virus attacks, it is the equivalent of living in a high-crime area. Maybe you don't want to own an expensive car in such an area. So, maybe you don't want to have a PayPal account, or any type of personal account on the internet either. Or maybe you spend $5 on a better lock.
B) Even with a secure computer, if you are susceptible to 'social engineering' attacks (you comply with requests for your password), then you are engaging in risky on-line behavior. So, maybe you don't want to have a PayPal account, or any type of personal account on the internet either. Or maybe you spend $5 on a better lock.
C) Though it looks to me that the 'bad guys' are not PayPal's fault, if enough people drop their accounts over fear of virus key loggers or phishing, PayPal will need to do something to counter this (just like car makers added locks/alarms - so they could sell more cars). Right now, it looks like they decided to offer extra security (quite effective IMO) for $5 (probably below their cost). If that isn't good enough, they will need to go further.
Considering the volume of eBay postings I see, I doubt they will go further for now.
I did just sign up with PayPal and I am concerned, hence my interest in this thread. However, since my computer at least has a history of being secure, and since that 'ShieldsUp' website shows me to be 'invisible' (Stealth Mode) on the internet, and since I NEVER respond directly to emails or other social engineering attacks, I feel fairly comfortable with it. Based on what I read, I would NOT tie my bank account to it, and I m considering getting a separate credit card, just for stuff like this - it would be a pain to cancel/reset some of the auto payments I have made to my current cards.
-ERD50