Sorry to hear this... I have done A LOT of business with HK. They are lacking in a lot of areas, but they are not credit card thieves. I would suspect someone tagged your paypal account. One thing that I would do is to do a good virus scan and Spyware check. You could have picked up a key logger and sending everything you do to the hacker. As for being in a store, I never let the card out of my site, and never allow someone to hold the card with more than one hand. I very rarely even hand it to the clerk, just show it to them for viewing, not handling. Good luck on getting this thing resolved.