Yesterday there was thread in the etsy forums about someone having their PayPal account hacked. Eeek! It reminded me that I ordered this security key from PayPal but hadn't activated it. I immediately went into PayPal and turned it on.
If you have a PayPal account you might want to think about getting one of these little gadgets. They are only $5 and are very simple to use. It just adds an extra page to the log-in process. Once you enter your regular password you are redirected to a page where you push the button on the security key and then enter the six digit number that shows up on the screen.