When they catch people that do this they should chain them in town squares so we can throw rotten fruit and vegetables at them and generally beat the snot out of them.
Hope you get everything back.
Are you sure your email was hacked? Did they log into your email account? Is your email with your ISP or is it with hotmail/gmail/yahoo, ie webmail type interface?
Does Blizzard ask a secret question before emailing you a reset password?
The reason I ask is that they could possibly be screwing with the DNS and your domain's email could be directed to their mail server.
EDIT: So I went and checked, on the account retrieval page it asks for your account and email address. So somehow they must connect the account name with the email address.
I can't think of a reason why they would request the password (causing you to be locked out of doing it) if they already had the password so logically they must have used that service to gain access and somehow they must have intercepted the email. Maybe you can ask Blizzard if the email address on your account was changed. Not sure if they would give out that information but it would be handy to know if you were keylogged or whether they somehow made a connection between your account name and email.
They may even have packet sniffers along the route somewhere that picks up the wow login information packages. If they can get the account name and email from those packages then there is absolutely nothing we can do about it, it is completely reliant on how secure the encryption of the login communication between the WoW client and server is.
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