People WILL click onto links, won't they?
The fake website trick can really only be effective if people don't pay attention to the address bar, or click onto links in emails. *sigh*
Another thing to keep in mind is that if you tend to use the same password on various accounts or sites, ideally it's best for you to change your password on those other sites. It's particularly important if you use the same password for a hotmail account as you do for any account related to your financial information.
If your PayPal account or eBay account passwords are the same as your hotmail account password, please...! Change them! Hackers with your email password can automatically try the same password in other accounts of yours - it's all bot-generated, so don't think "they wouldn't bother trying". They don't need to. It's automatic. I know it's a pain trying to create strong passwords for various accounts, but for the sake of your account security, you should simply bite the bullet and do it.