Not quite in the same situation, but I would advise that PayPal is being targeted by con-men at this time - or at least here in Europe.
These cons. are literally attempts at phishing (identity theft). They look like official PayPal communications - they even carry the warnings for crying out loud!
They always ask for an update on your account stating there has been 'an unusual amount of activity on your account -we strongly suggest you change your password' then you are directed through a link that agin looks exactly like a Paypal site - where they ask for all your details again - e.g. credit card, address - and even your bank account number and security code.
Note - whenever you get an e-mail purporting to be from PayPal - and assuming you have a PayPal account ALWAYS check with your account as this isthe ONLY place PayPal will put messages to you.
I have complete faith in PayPal, and on the one occasion in which I was defrauded by a dodgy trader, I was completely recompensed by the Company, and the trader was deleted and stopped from trading.
When in any doubt you can always check with the company directly - but NEVER provide any information in response to an e-mail contact.
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