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Posted By: Red

Paypal collects a fee for their service and should be responsible for the loss if you followed all their rules. If they allowed a scammer to register it's their fault not yours. They make it too easy for scammers to pull this hit and run. If you accepted a credit card directly from the person, or took a personal check or money order, you'd ship only if and when you felt comfortable with the transaction. If something didn't feel right you wouldn't do the deal. You pay Paypal to handle all that and then you're the one that gets shafted if anything goes wrong.