Hey all. With the new year upon us, it is the perfect time to do a little housekeeping to protect your self.
#1. The easiest way to do this is by changing your Paypal and eBay passwords regularly. I typically do mine twice a year. Make sure they are two different passwords, and also that they are different than your yahoo, gmail, etc password.
About two years ago I was the victim of a Paypal account breach. The hacker used an iPhone to transfer $2500 to himself from my account. Paypal recognized it as fraud immediately and locked my account, but not before some frustration causing damage was done. See, I didn't have $2500 in my PayPal account, so a draft was automatically initiated from the bank account associated with my account. Once the draft is started, it can not be reversed by PayPal or the bank and has to run it's course. Unfortunately, I did not have $2500 in my bank account either so a series of overdrafts ensued. My bank was kind enough to front me the $2500 until the lengthy process was complete. It complicated my transactions both selling and shipping until it was cleared up, which took 4 weeks.
#2. Make sure you have a designated ebay bank account linked to your Paypal.
At the time of the hack, I had only one bank account, which I used for everything, including paying the mortgage. If the bank had not fronted me the $2500, I would have missed 2 of my bi-weekly mortgage payments, as well as numerous other bill payments.
By simply changing your passwords regularly, you can help minimize the chances of this happening to you. I know we all hate PayPal and their egregious fees, but I greatly appreciate the fraud service they provided when I needed it.