Thanks everyone for your responses. I didn't realize being hacked on WOW was so common. We didn't have any protective software on the computer because it's a new MAC. When DH first called me he suspected a keylogger too, but dismissed his own instincts because we have a MAC. Thanks to all you guys saying it was the most likely hacking tool involved DH bought a Keylogger finder called "Little Snitch". BOY would I LOVE it to pick up on someone but DH says it won't register until someone checks in on it, whatever that means (he's IT security & I'm techie illiterate so I don't ask too many questions, he gets exhausted trying to explain LOL). While I know MAC's aren't usually targeted by hackers i can't help but wonder if the poor economy and all the big money involved in WOW isn't more than enough reason to motivate hackers towards being more creative.
I have to say I am worried about a Keylogger now because I used the MAC to look at our banking info. But, come to think of it all but one of my passwords is already in the computers memory, as in I hit the first letter and the rest is filled in automatically. Do key-loggers record the memory entries too or just the ones we manually input key by key? Uggh, I feel so vulnerable at the moment.