PayPal gets a cut of the transaction, so they have no incentive to stop this. There is no report button and when you email the invoice to them as requested earlier in this thread they respond 2-3 days later that the invoice is legit. Then they ignore follow up emails.
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I just submitted the fake invoice we received to PayPal spam email provided here. Their 'security' team responded that it is not fake and there is nothing suspicious about it. So much for PayPal protection.
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