Where things turn even more uglier is that eBay has chosen not only to remove all the items (perhaps out of the fear of the press finding out how many people have been conned out of their money) but also they left Jennynstan's account untouched.
The amount of compromised eBay accounts have been on the rise due mainly to the quantity of spoof eBay and Paypal emails that have been sent worldwide.
Out of the 6800 spam emails which I got in the last 30 days, more than 1.5% was spoof emails which apparently originated from eBay or Paypal. You can find more about Spoof emails here.
After collecting account details, the conmen then build an intricate network of buyers and sellers who buy and sell within themselves, effectively boosting their positive feedbacks within a relatively short period of time, enough to allow other members to trust them. An illustration. Jeff4437 apparently buys a laptop from Jennynstan and is supposedly the last person to get one and amongst one of the last few customers of Jeff4437 is bsiutcv12345, another compromised account.
If might take some times before you find out that your eBay account has been compromised simply because the account could be eventually used as a way to add more feedbacks. See here for a crude example.
Where eBay is actually letting down its own genuine and regular ebayers is when they fail to provide us with tools to fight fraudsters, sufficient guarantee against them and safer ways to complete transactions, eBay will quickly lose its most precious asset, Goodwill.