As of this point, my bank account is $1006 overdrawn thanks to the fraudulent withdrawals and over draft fees. PayPal has the purchases under investigation for fraud. My bank, thank goodness has recognized it as fraud and is reversing all charges as well as performing thier own investigation. I have been using PayPal for years and have never had this problem. As of this point all my information is being deleted and I am closing my PayPal account.
It just goes to show that no matter how secure a site claims to be, there is always a possibility of a break in.