There has been many stories about Paypal frauds.The top 3 problems paypal users faced were
1.PayPal held the money with no explanation.
2.PayPal account freezed for no reason.
3.PayPal took money out of user's account without his knowledge.

Even I have been a victim of paypal.I received $100.00 for advertising in my paypal account.After 2 days,I received a mail from paypal saying my money is on hold claiming it an unauthorized payment.And after one week,the amount amount got reversed.I never came to know to whom the amount was reversed.I suspect only paypal that they kept the money for themselves.But still I use paypal as it is the only service accepted in many websites.
To read a detailed story about Paypal frauds click here.

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