Stolen Money
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Had my old phone I assume used to transfer 150 dollars out of my account to the Philippines. My passwords and all were on the phone, I changed my password and phone attached to my paypal account because I never used it. They said that somehow this transfer of money was consistent with my previous transactions, and I've only used PayPal twice! They denied the claim, and I'm fuming, I'll be making a claim against paypal with my bank.
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Add or withdraw money
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I’d assume that the thief used your internet connection to login. If the IP address matched, then PayPal sees the same person using the account.
Your bank is a good start and a police report for a lost or stolen phone would help.
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