Unfortunately, email scams are common these days.  These are fraudulent emails (sometimes known as phishing) purporting to be about your accounts with banks, credit cards, PayPal, etc.. The problem is pervasive - i get these crazy emails purporting to be from Chase, Visa ,Paypal etc.   Guess it's the price of our internet age.

The good news with respect to PayPal (and others as well) is that it is pretty easy to tell if the email is phony.  If you receive such a phony email, do not respond to it, never click on a link in the email or any attachments.  Just delete the email message.   Read this url about paypal.  it gives you some simple things to do to avoid these scams (and it's good advice in general).   

Here's s very short summary, but I suggest also looking at the web page above:

Protect Yourself from "PayPal" Fraudulent Emails

"At PayPal, protecting your account's security is our top priority. Recently, PayPal members have reported suspicious-looking emails and fake websites. These emails are not from PayPal and responding to them may put your account at risk. Please protect your PayPal account by paying close attention to the emails you receive and the websites you visit.

Please use the following tips to stay safe with PayPal:

• Safe Log In: To log in to your PayPal account or access the PayPal website, open a new web browser (e.g., Internet Explorer or Netscape) and type in the following: https://www.paypal.com

• Greeting: Emails from PayPal will address you by your first and last name or the business name associated with your PayPal account. Fraudulent emails often include the salutation "Dear PayPal User" or "Dear PayPal Member".

• Email Attachments: PayPal emails will never ask you to download an attachment or a software program. Attachments contained in fraudulent emails often contain viruses that may harm your computer or compromise your PayPal account.

• Request for Personal Information: If we require information from you, we will notify you in an email and request that you enter the information only after you have safely and securely logged in to your PayPal account."