Well ... when you exchange bitcoin (no chargeback) for paypal (with chargeback) ...
Welcome in real world, neo.

Sorry to hear about that.  It's true that for many people there will need to be improvements on ease of use and security , it's certainly not realistic to expect the average everyday person to fully understand how to take the best possible steps to protect their bitcoin. Services offering improved security should/are coming, weither that be places that offer insurance on your btc or hardware wallets like someone else suggested.

I'm sure a lot of people have simliary stories of losing their bitcoins when they first got involved with bitcoin and never took the proper security measures.

Hopefully this doesn't turn you away from bitcoin forever and you can use it as a learning experience and grow from it. Like someone else suggested, a computer dedicated only to holding bitcoins is a great option and a cheap investment.

As upset as you are right now (rightfully so) it's good that you can share your story so others can learn from it.

You can blame Bitcoin but they probably also have your PayPal password.

Never click a link, even to your bank. Always type it in yourself.

as a fellow aussie, i find localbitcoins.com good too. you can find someone with same bank and often swap same day. various prices. as far as wallets bitcoin armory offline is great. there was a good talk given by Adam of bitpos at the sydney talk and trade on how to manage it.

sorry to hear of your trouble.

Hey there is e-mail money transfer too if you have an online account. I'm sure they have that in Australia, if someone messes around you atleast know their within law enforcements reach.

You could've just come here for advice. Sadly, people usually do before thinking. And as for BTC security it isn't bad, you just have to keep your wallet on a separate machine that you don't use daily just turn on to make a payment.

This is the transaction 9a7c7fa39fbfc7c186f6b401777d6032f25fe8008972c8c569a70aa0b4408d90
My wallet is 1KMNqDKVTfgRiar2X6cLSdt4NmBdu5xrjM
I don't really understand why part of it was transferred from 167Ak3Y98CTJv7Zbspghj7fSPsPg4rnN7E
And his wallet address 1JQ6Yheb1cZm62E8EqaccvqNEsNpYd1aTg
I now got bitdefender total as well as malwarebites and superantispyware.
Also trialling spyware shelter firewall..
Also trialling blockchain.info wallet with sms 2 factor auth.
Hopefully that keeps the rabbits out 

It baffles me how anyone can do financial transactions on a system with free programs like Avast.  Pay a few bucks and get something that would give you way better security versus losing everything.  Lesson learned.

Also note that just about all AntiVirus programs give you (at best) something like a 96% coverage (which is an excellent result), many however don't even scan for certain malware types which better require dedicated scanners.
If your program doesn't check for heuristics and has some form of behavioural analysis of very good quality - you're usually screwed.

Many Trojans and Drive-By Downloads currently are initially detected only by like 3-4 out of 40 AV Software suites (and only after the Zero-Day timeframe is over) and it can take many days for updated signatures to propagate, make it into new definitions and get distributed as updates.

In Short :
Having one or two installed Software scanners detect nothing means.... absolutely nothing. Even if they're usually considered good quality products.
Plus, the bad guys know this as well and get pretty smart nowadays. They don't use "old stuff" they know scanners would immediately detect.

The OS and Browser needs to be up-to-date, especially all its plugins (Adobe Reader and Adobe Flash comes to mind, those suck at security) - and as a last resort, a 3rd party Firewall with strict rules concerning unknown applications (including System or Pseudo-System rights .dll's etc.) needs to be installed, so you at least get a last chance (flycatcher/quarterback) warning.

Still, if it's run on a MicroSoft Windows machine, odds are generally against you - big time. Its security is nothing short of a swiss cheese.... LOTS of holes in it and that never changes (and that's not even including the systemic backdoors). MS Windows is okay for gaming and security-irrelevant tasks, anything that needs serious security or serious privacy is better left to Linux/Unix/BSD/Solaris etc. A 2nd Partition that upon keypress boots a secure OS is usually a good idea (btw. that's how many large companies do it with their Laptops, although that usually includes a hardware dongle).

I do wonder if there's a trusted Linux Live CD/DVD focussing on Bitcoin (i.e. having all BitCoin software installed and prepared to store all permanent data on a Flash Drive); that would be neat, just boot off a clean optical media and do your Bitcoin business, when finished restart into the known Operating System off HD. Pretty secure compared to an ageing Windows and generally a hassle-free solution.

PS.
The best protection is not available for purchase and needs to be custom compiled by each user using a classic neuro-chemistry process :
Common Sense V1.0 - the best firewall and protection around.