I have a similar problem. I haven't used my paypal yet, no need yet. However I got an email yesterday stating they have reached out to me prior to (which is a lie) asking me to correct the situation. Saying unusual activity has occurred on the credit card linked to this account. I don't have a credit card linked here just a bank account. Then it tells me to log in to verify (fix) the problem. So its asking me for my debit card number and 4 digit pin...that is a no no. I have never been asked to enter my personal ATM passcode. This sounds fishy, so I guess I will wait til they open this morning to call them up. This is absurd!!!
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