I recently responded to a number of similar emails from clients that are concerned about the safety of their computer and its use when loggin in to 'online banking' for example.
PayPal has this to say which helps understand the issues but once this is understood, you should feel more in control and should not feel it is time to stop using such services. It is still the safest way to do your banking!
Always remember to keep your spyware programs up to date. You can check the latest versions via my SOFTWARE/SUPPORT page.
