I received notice of a Paypal scam, and thought it best to notify the board of how it works.
Seller sells the item and receives payment via Paypal from buyer. Seller ships item. Buyer claims never to have received the item but the item is in fact delivered, but buyer delays receiving it until after the Paypal seller protection shipping requirement deadline expires. The sale is thus not consummated by Paypal rules. So, Paypal sides with the buyer, refunding their money. Buyer gets goods for free. Since you're dealing across state lines, lawsuits are expensive.
Sound practice is to require a USPS money order on transactions unless the seller is someone with a good history or someone you know first hand. USPS money orders are hard to forge, and if one tries, the feds get very serious.
I hope that we never have a problem like that here, but the report I received gives me some concern. Since the story I have is not verified, let me just suggest that you should be very careful about taking paypal from someone you do not know and trust.