I ebay all the time ~ using paypal.
After several years I just got my first spoof email this week from someone claiming to be paypal with notification that my 'payment' was complete.
Of course, I didn't bid on or purchase the item listed in the email ~ and there's an option to 'dispute' which pops right up. If you just 'sign in' using your paypal login (email address) and password, your dispute is supposably processed.
Then, of course, if you actually put your information through in the fraudulent dispute box, they then have access to your paypal account, which (in my case) funnels from your bank account.
So, all in all ~ I love ebay ~ used to operate entirely using money orders because I was worried about using paypal. I'm going to continue to use paypal, because it's convenient.
Just watch your tail feathers on that stuff.