I can't begin to count how many clients have contacted me about Paypal emails they've received.
They arrive in your inbox with a subject line like 'Paypal account denial' or 'Your Paypal Account will be suspended'. Even people without Paypal accounts have contacted me thinking that someone has setup an account for them without their consent.
Why are they sent? The scammer sets up a website, usually on an IP address instead of a domain name. They copy the pages from Paypal so it looks real. They request that you validate your login and password. Hopefully you will login and give them your information so they can access your Paypal account.
Some common sense is in order. If you receive any email that requests you click on a link, check the link out before you click. Hold your cursor over the link, in most email programs, the link will display in your status bar.
If Paypal really sent you something the link should read https://www.paypal.com. If it has some other website or an IP address, Paypal didn't send it. If the link looks correct, type that address into your browser. Don't click it, don't copy it and paste it, just type in https://www.paypal.com.
If you decide to click on the link, pay careful attention to what happens to your browser URL line. That's the big box in the top of your browser, it should stay at https://www.paypal.com. If it goes somewhere else, its a scam.
Paypal has an excellent Security Center that can help you recognize a scam email and walk you through what they want you to do.
Don't respond to any Paypal scam emails. Your account isn't in jeopardy.
Don't enter any personal information if you aren't sure about the source website.
Forward the email (the whole thing including headers) to spoof@paypal.com. PayPal will immediately work to shut down the scam site.
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