wow, I had no idea there were these problems with paypal!! Good lookin out Isaac!!
There is a backdoor in paypal where someone could make a purchase for a large amount of money, and have the product(s) shipped to that person. Even if the seller ships the item using all of paypal's "seller guidelines for seller protection". The buyer can follow a simple 1-step process and get 100% of the payment back AND still get to keep the items that were sent to him. This method works on all eBay auctions, online small-stores using paypal, and personal goods transfers such as those that take place on gb/fs/wtb message forums. It doesn't matter that the seller ships within seven days or retains a tracking number or fully insures the product or requests a delivery signature or presents photo proof that the buyer now has the item - although paypal talks about 'seller protection', if you read exactly what that protection entails, you will know exactly what the flaw is and how to exploit it