Update: After a total of four fruitless phone calls, the final customer service representative seemed to figure out the problem, and transferred me to a department where they asked me some security questions to do some in-depth verification of my account and my identity. That fixed the problem. I asked why my account had been flagged/disabled, but he couldn't tell me. He was very professional and efficient, and 3 or four minutes later, everything was back to normal. This was after 5 hours of troubleshooting and phone calls with Paypal. From the screen shot above, and messages displayed, there was no indication that this verbal verification was needed, so I hope that Paypal can fix this process. Perhaps if you're getting the same "Quick Security Check" message, it would be worth a phone call and asking to have your account verified via the security questions.
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Were you able to get assistance with the issue you mentioned? I'm having the same problem. I'm presented with the "Quick Security Check" window: Although I have a mobile number associated with my account, it doesn't present that one. I click on "Add phone", but it will not accept any number I enter, just presenting a small red 'alert' triangle. No reason given. When I call Paypal, I get a message that 'due to COVID there are no agents to assist'. The chat window stopped working 'due to COVID'. I have sent a message, but got a generic 'try again' message in response. So frustrated.
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