PayPal Security Flaw Allows Identity Theft
miller60 writes "Phishing scammers are actively exploiting a security flaw in the PayPal web site to steal credit card numbers belonging to PayPal users. The scam tricks users into accessing a URL hosted on the genuine PayPal site, which presents a valid 256-bit SSL certificate confirming that the site belongs to PayPal. However, some of the content on the page has been modified by the fraudsters via a cross-site scripting technique, and victims are redirected to a spoof site that requests their account details."
I think you're forgetting the fact that PayPal also stores checking account information, which is far, far more difficult to get money back from in the event of identity theft.
http://www.acunetix.com/websitesecurity/cross-site -scripting.htm
a good example of how.
Never follow a link in an email.
It may be convenient, but in the vast majority of cases I've found that I can navigate from the main page if I know what I'm looking for. You can do basically everything from paypal.com without following the link that takes you directly to a specific page.
http://www.cgisecurity.com/articles/xss-faq.shtml
Believe me, if I started murdering people, there would be none of you left.