When I first started my PayPal account and I wanted to verify my address they mailed me a letter with a URL and code to enter to verify. This was a few years back so they may have changed the process since Ebay took over. I've had to move since then and it was a breeze as long as the credit card on file had the same mailing address.
I understand that identity theft is a big issue these days, but you have to trust someone if you want to get anything done. I chose PayPal because I only use one credit card on the net and can check the website to see if any fraudulant charges were made. Most credit card companies even call if big purchases were made just to verify it was you who made them. I've been buying and selling on Ebay for a few years now and I don't like shipping to unverified addresses because PayPal doesn't protect me if someone claims I shafted them.
How come you only hear about when websites get compromised? Because it doesn't happen often enough so it's considered news. Facts are, you're safer dealing with online purchases than offline purchases. People go to restaurants and pay with credit cards everyday. Just hand it to the waiter/waitress and they don't think anything of it as the server walks out of site to pay the bill (and write down the credit card info since they only make $2.00/hr plus tips). After their meal they go to almost any retailer and buy whatever. Receipt prints out, you sign the merchant copy and you get the customer copy which has your credit info XXXX out. To bad the cashier making minimum wage has the receipt that has your credit card information without the XXXX on it.
This type of hypocracy upsets me considering the websites are doing more to prevent fraud because they know people are going to target them saying they're not safe. What people need to do is look at the people handling their offline transactions.
What's a geek to do? Take off the tinfoil hat and get educated about the real problems of the system.
Here's a little light reading:
http://www.hotelmarketing.com/index.php/co..._offline_world/http://www.consumeraffairs.com/news04/2005...ft_offline.html