They make a website that looks exactly like PayPal's login page, and provide a link to it in the email. If you click on the link and enter your userid/password they have it and can send themselves money from your account.
As others said, if you need to go to PayPal, go there yourself, never through an email link. And always double check the address line at the top of your browser before entering the userid/password.
The easiest way to manage your accounts is to get a Password Safe
http://passwordsafe.sourceforge.net/, you can keep the links to the login pages there and copy/paste your userid and password. Keep a backup of the password safe file on a thumbdrive, as long as you have a good password for the safe nobody can get the other passwords.
This post was edited by TomH in PA at 14:05:55 01/17/10.
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