I'm glad you were able to recover your PP account and change the password. So scary that this can happen to anybody and not just through paypal but through bank accounts, emails, etc. I continually get an email from "Paypal" in my junk mail daily saying that I need to change my password and create a new one or that I was hacked and need to click on the link in that junk email, etc etc. I know for a fact not to do it and to just continue to trash those fraudulent emails.
Don'y ever click on the link from a fraudulent PP email to see what is going on, instead just go to the actual website and sign in.