Xstream wrote:paypal wasnt tampered with, my ebay preferences were changed. what happened is that they took over my ebay account with its 99.5 % positive feedback and listed about 80 bogus items, then changed my preferences so that anybody who bought a fake item, would send a paypal payment to them, not me. All the listing confirmation emails went to them, not me. It was discoved by ebay who noticed the strange activity.
so they got my ebay password somehow.
If that's the case, then they likely either phished your eBay information or guessed your user/pass. I'd be more inclined to go with the first option. Like I said, it can happen and you'd never even know it. I didn't realize it when it happen to me until someone else told me it had happened to them via email and they were locked our of their account.
I would work this out with eBay... and try and think of when this happened. Then you can retrace your steps, look at emails, etc to see if you can find out what caused this.