Hi @handcar,
Welcome to the PayPal community.
I am sorry to hear what has happened to you. I am sure you probably have already done this but just in case you havent please change your email account password. Always keep your password for email account completely separate from any other account as we do store a lot of information on there without realizing it.
As it seems someone has set up a separate account I would continue to contact the merchant and make sure to highlight to them that this is unauthorised. If you get no luck there then I would contact your card issuer to see what they can offer you.
I hope this helps,
Paula
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