A good friend of mine in Second Life, a very well known blogger who started a top Second Life blog was hacked today.
Someone managed to get into her account (it looks like a professional blackmailing service that sells your information back for a fee), take it over, and cause all sorts of difficulties.
Make sure you take the following action to avoid this happening to you:
1. Use a combination of letters and random numbers on your password. Do not, for example, have a variation of two second life account names as your password with no numbers.
2. Change your password every year at least, every six months is better.
3. Run spyware checkers on your computer. Things like keystroke programs that can deliver your password to a third party have been reported in the past.
Of course, take basic precautions.
And remember, there is no such thing as a secret in Second Life if more than one person knows.