I became the victim of internet fraud this week when I found someone had hacked into my Paypal account (how??? only I know the password and I am very cautious and never respond to spoofs etc, can only assume there was some sort of inside job???). A bit of research finds that it is quite common - three transactions very close together on my account transferring money to Skype, a total of about $44. I have never used Skype and don't have an account with them. It appears that a prepayment account was set up without my knowledge (a sort of Direct Debit). I was fortunate in that I discovered it very quickly and Paypal have refunded the money within a couple of days. BUT the really annoying thing is that Paypal have now restricted my account. I can still take money from customers but can't remove or transfer money, even refunds, or do anything else. To get back on track I have got to supply Paypal with all sorts of information including photo ID, bank statements etc. I haven't yet worked out how to do this without having a scanner to email them copies or access to a fax to send them that way (the only way they will accept it), and it will cost me time and money.
I thought it was worth posting this so it will warn others of this scam which is not unusual. Keep a close eye on emails from Paypal about debits, and check your account regularly.