TJ, I provided 2 links, and if you read more on that site, you can find out some more dirty tricks that can be done. I didn't want to post everything. I'm not accusing anyone of anything, I'm telling you what is going on, or at least some of the stuff that I've found out recently.
I know in the other Sony thread I always took the side of the hackers (for the most part at least), but there is some potential evil going on now - but it's completely Sony's fault for leaving the system so vulnerable. I would recommend removing any CC info stored on your console, and only using PSN cards from the store if you plan on buying things online until they get a better system. It's not a matter of updating their security protocols, it's a matter of introducing[/] some security protocols. The names are blocked out in the chatlogs, but if you hang out in efnet you'll probably be able to figure out who user1, etc, is, and you'll know it's all legit.