I saw one post on a warez site where one guy posted that he hacked one guys paypal and its unverifyed and you can still make transfers with it... I thought to myself is it safe to have an paypal account? or its just that the person himself had a keygen or something?
Keygen? come on.. Passwords can not be hacked using keygens, However it might be possible because of KeyLoggers installed on your PC. You need to clean them out to be safe.
There are possibilities to hack. But we must be careful and could easily trace out his IP address. We could report such problems to the admin so tat he could be banned. this will also help them to achieve better performance.
I too have heard about these type of incidents many times. You should very careful while using your paypal account. To protect your account from illegal strangers do not login your account from public access systems or cyber cafes.