Hackers are believed to have breached a database housing information on 145 million accounts, gaining access to names, postal and email addresses, phone numbers and more.
The incident marks a huge embarrassment for the firm, but what does it mean for its users and what measures do they need to take in its wake? Read on to find out.
© Rex Features / KPA/Zuma
What was stolen during the eBay data breach and how will it affect me?
As we've already touched on, the perpetrators of the eBay cyber attack now have access to names, postal and email addresses, phone numbers and dates of birth of millions of its customers.
The hackers are also said to have obtained scores of encrypted passwords, but there is no evidence to suggest that they have been able to decipher them so far.
With your personal data out there in cyber space, an increase in spam emails is a distinct possibility and identity theft is a worst-case scenario.
Unexplained changes in your credit rating is a tell-tale sign of identity theft, so undergoing an assessment with services such as Experian orEquifax could help you find some peace of mind.
There were reports that information from the breached database has been uploaded to anonymous text website Pastebin, but eBay has looked into this and denied that the leak is genuine.
The e-commerce giant has also move to assure customers that no financial information was stolen, so your credit card details stored on PayPal are safe.
What action do I need to take in the wake of the breach?
Heeding eBay's advice and changing your password on the service is a good place to start, but you should also reset your password on other websites where the same phrase has been used.
If a hacker has obtained your email address and password, there is every possibility that they will attempt to use them to log into various popular services around the internet.
eBay is in the process of notifying customers that they need to reset their password, but many who have tried to do so have encountered technical difficulties.
The auctioneer has addressed this issue, claiming that it is merely due to the volume of users attempting to enter new passwords simultaneously, so hang on in there.
Users are also being warned to look out for phishing emails attempting to dupe users into entering their login details. The official password reset emails being sent out contain no links, so be wary of ones that do.
Users can reset their eBay password manually by visiting this link.
Tips for creating a secure password
Common sense should tell you that short, simple passwords are much easier for hackers to crack than lengthy, random ones.
The best passwords are usually at least eight characters long and are made up of a combination of letters and numbers, as well as upper and lower-case characters.
Typing words backwards, using random symbols and choosing abbreviations, misspelt phrases or fictitious words can also work to your advantage - just make sure that it is something you will remember afterwards.
Perhaps most importantly, be sure to select different passwords for each service you use, as using the same one puts your entire digital life at risk whenever there is a breach like this.
A password manager such as Password Genie 4.0, Dashlane or LastPass will help you keep track of your various different logins.