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Just sold my first item on Craigslist and the buyer wanted to transfer money to my paypal account. I guess they are out of town and asked me to send cash (moneygram) to their shipping agent via Walmart?? Does that sound legit? Can't afford to be scammed.
This is a scam. Always go to the PayPal site directly and log in to see if you have any transactions or notices in your account. Don't click any links in emails.
Here is a PayPal link with details on scams like these.