My understanding is that when somebody tries to defraud you via PayPal, PayPal is going to try to reimburse you by tapping into the offending party's account (your reimbursement is not going to come out of their pocket). If the criminal party was smart enough to disconnect all funding sources from PayPal, then you are going to be out of luck. I believe PayPal will tell you to go pound sand. This is where the heavy-hitting credit card company, who has a massive amount of leverage over PayPal (and anyone else who uses their services) comes to your rescue. This is partially why you pay credit card companies--they provide a beneficial consumer protection service. I sort of get your point, but the counterpoint is that PayPal is always touting their buyer protection as a reason to use their service. In these cases where they do not deliver, they are basically saying "read the fine print, sucker". This is somewhat unethical, so I have no problem with bringing in the credit card company as an equalizer.