You heard incorrectly. Rabin signatures as proposed in his 1979 paper include (randomized) hashing of the message, which completely prevents the attack given reasonable choices of hash function.
The scheme without message hashing was never proposed, and should be called something like "oversimplified Rabin-like signatures" to avoid confusion. I recommend Bernstein's paper "RSA signatures and Rabin–Williams signatures: the state of the art" which sets the historical record straight. This is not a minor caveat: if we're going to ignore clearly stated conditions on the use of a scheme in the paper or standard that proposed it, then we might as well by the same argument say that RSA, ECDSA, EdDSA, and every other signature algorithm in common use are broken under chosen message attack (and also under weaker attack models in many cases).