Paypal fraud!!!

Received a rude shock this morning..an email notification that US$34.95 was paid to Yahoo.com. from my Paypal account! It was payment for Yahoo! Premium Services. Huh??

Immediately called Paypal Singapore. Had opened a dispute for it. It was very strange coz the "hacker" didnt change password. I still can access it using the password. Ive changed a new password.

The 1st page shows:

Business Name:
Yahoo! (The recipient of this payment is Verified)
Email:
paypal-billing@cc.yahoo-inc.com
Payment Agreement ID:
B-6475936658396424E
Billing Description:
Yahoo! Premium Services

View Billing Agreement Details
Total Amount:
-$34.95 USD
Fee:
$0.00 USD
Total:
-$34.95 USD (equals -$55.49 SGD)
Conversion from:
-$55.49 SGD
Conversion to:
$34.95 USD
Exchange rate:
1 Singapore Dollar = 0.629843 US Dollars
Item Amount:
$34.95 USD
Postage:
$0.00 USD
Packing:
$0.00 USD
Quantity:
1
Date:
27 Feb. 2009
Time:
14:01 PST
Status:
Completed
Postal Address:
No Address Provided

View Billing Agreement Details:

Billing Details

Return to Transaction Details

You've authorised use of your PayPal account for future payments to Yahoo, Inc..You can cancel this authorisation by clicking Cancel below.
Billing ID:B-6475936658396424E
Status:Active Cancel

Merchant
Business Name:Yahoo, Inc.
Merchant URL:http://www.yahoo.com
Customer Service Email:paypal-billing@cc.yahoo-inc.com
Customer Service Phone:866-562-7228

Bill Term
Initiated Date:13 Mar. 2008
Funding Source
Primary Funding Source:
PayPal BalanceWhat's this?

Backup Funding Source
Backup Funding Source:
Not SpecifiedChange

Who the hell in the right frame of mind would pay US$34.95 (SGD$55+) for the so-called Yahoo! Premium Services???? I dont even have an idea what this permium svs is all about.

Beware!!! Paypal is not safe!