Just noticed this thread on scams and I'd like to make known my mate's experiences on eBay so (hopefully) no-one else will get caught out.
The idea is that PayPal is a safe, conveneient, way of doing business. It's convenient, but far from safe. My mate sold 2 things last year, a mobile phone (more like a mobile pc really than a phone, the one that flips open to reveal a keyboard) and a pair of concert tickets.
The phone - someone bought it and paid through PayPal. PayPal confirmed that the money had been paid and so matey sent the phone off. Some time later (several weeks) PayPal contact him saying that he owed them £300 because the buyer had paid using a stolen credit card. PayPal have no system for stopping this kind of fraud and so they chase the "easy target". They have no idea who the buyer really was now, so they are suing my mate for the money instead. Maybe they don't really stand a chance, but they are giving him grief anyway and he iwll ahve to defned himself in court.
On the concert tickets (worth £100 or so), he posted those and got a certificate of posting. No idea why he did not send them recorded delivery, I think I would have. Anyway, a couple of days before the concet date the buyer claimed that they had not arrived. PayPal INSTANTLY refunded him the money and then sent a claim to matey for the £100. The assumption was that the seller had ripped off the buyer, not considering the possibility that it was the other way around.
That's my 4 penneth worth anyway.