New to the community? Welcome! Please read our Community Rules and Guidelines
You can report violations of paypals policies via clicking on legal bottom right of this page > select the acceptable usage policy > there is a link on the word report to report violations of that policy.
Secondly you may want to report it to your local police if the other party is in the same country as you. Not knowing what laws apply or work in your country you would need to see if they can help you.
Yes, and the moderators have already informed me that that is the best option for reporting things like that.
That is why i post it as advice.