I can't answer your question about what triggered it, but I started receiving similar letters a few weeks ago and now, hardly a day passes where I don't get at least one to some email account. Funny thing though is I've yet to get one to the email account I actually USE for my eBay business.

As soon as I received the first such email, I shot off an inquiry asking PayPal whether it was valid and they in turn replied almost immediately that it was not. I changed my password information nevertheyless.

An interesting response, Glenn. As it turns out, this particular customer is involved in the adult / porn (should I say "pr0n"?) industry, so it doesn't surprise me that this could transpire, but are you saying that none of these notices are legit? Or just that none of those you've received are legit?

I have to admit I've gotten "lazy" and don't inquire about the emails I've been getting anymore after verifying that the first couple were bogus. Note though what I mentioned in my first comment: None of my emails have come to the email account I use for Paypal business. I am watching and should one come to that account, I'll respond differently.

All the emails I've been getting eventually are wanting you to verify some piece of account information such as your password, credit card numbers etc. My suggestion would be to NOT provide that sort of information until I had verified and reverified that it truly was Paypal emailing you about a problem.

Ah, got it. Yeah, I don't click on links to verify things any more, I type in URLs. Phishers are getting pretty darn savvy. Thanks for the tip!

"this particular customer is involved in the adult / porn (should I say "pr0n"?) industry, so it doesn't surprise me that this could transpire, but are you saying that none of these notices are legit?"

if I remember well Pay Pal refused to continue process any adult transaction some time ago

The email above looks like a real email from PayPal and has nothing to do with pr0n. Glenn's referring to phishing emails which typically look quite different from the email above.

I got a legit email from Paypal just like that about 3 years ago. I got ripped off in the amount of about $900. Paypal ended up closing my account as a result. But yeah, that's how Paypal does payment reversals, even though phishers are using it now to scam people.

By reading all previous note I can't help but letting you all know I have just received an email from Paypal today just like that.In this case I was a seller who received money from a buyer that Paypal claims to be a fraud. I don't know what to do now. It looks like it's going to be a $510.00 lost that I have to take. Anybody have any idea what I should do. please advise.Thank you.
Please read the following mail from Paypal.

It has come to our attention that you may be the recipient of
potentially
fraudulent funds. We have initiated an investigation into this event.
In
the meantime, we have placed a pending reversal on the funds in
question
until the investigation is complete. This pending reversal will show as
a
deduction in your available balance. In the meantime, you are free to
continue transacting using your PayPal account.

Transaction Date: Jun. 3, 2004 07:11:26 PDT

Transaction Amount: $510.00 USD

Payor's Email: bosdirppl@hotmail.com

If you have not delivered the goods or services related to this
transaction, we ask that you delay or stop delivery until our
investigation
is complete as you may be liable for the amount in question.

To assist us in our investigation and to determine if you qualify for
the
Seller Protection Program, please send an email to
pending-reversal@paypal.com with the following information:

1. The item, service or purpose of the purchase, and the associated
value;
2. The name and address given to you by the sender (if an item was
purchased);
3. If shipped, the company used for shipping, date of shipment, and
tracking number for the shipment;
4. Details of any other transactions related to the transaction(s) in
question;
5. A phone number where you can be reached during the day and evening;
and
6. Insurance information, if applicable.

Any additional information you have regarding this transaction, such as
email correspondence, will further help us to expedite our
investigation.
Solving these cases helps us continue to offer PayPal as a secure and
cost-effective payment service. We appreciate your cooperation and
assistance.

Sincerely,
PayPal Account Review Team

Well, I'd definitely pursue the pending-reversal@paypal.com information and talk to them about what you sold and the details of the transaction! Do that immediately!!

And good luck!

Sounds like they are trying to sell their protection service... *turns off the cynic* ;-)

absoluteli right!