All I know is that my husband has three credit cards and ALL THREE have had to be replaced in the past TWO months. Favorite Fabrics, you should report this to PayPal and whether they do anything or not, at least you have done your part. On the third credit card, my husband asked who pays the debt. The credit union told him they turn the "bill" back to the vendor that accepted the card. So you would have been stuck with the bill and no material!! One bill was to a bakery in NYC for almost $500! Most financial institutions now have fraud units. PayPal should, as well. If not, you may want to reconsider doing business with them.
There's a lot of credit card fraud here in FL. The news says it is centered in Miami, but who knows? The only way we found out about the credit card fraud was that my nephew came to visit and asked if we wanted any computer help. My husband fessed up that he'd bought a program earlier in the day to help him "clean up" the computer and make it run faster. Nephew went through the roof! Scammers sell these and then can collect your inofrmation...passwords, anything you do online they can capture. Firewalls are there for a reason, but if you subvert them yourself, be prepared for a world of hurt. Luckily, they worked together to resolve the situation, but it took the next day to get with the credit union and we are still working to get our money back from the "speed up" program. You are right to be suspicious of large transactions. Or a transaction for under $10 followed by a large order. (The scammer wants to see if the card is good, then if you are dumb enough to bite on the bigger order.) Interesting thing: my nephew knew just from the name of the program that it was bogus. To us, it sounded fine, but he's been trained in this...thank God!