I go the exact same email today as well. Like you I changed all my security settings and removed my credit card info. I luckily didn't put any information into the link they sent me because I logged in through my normal paypal link in my favourites folder and saw that there were 0 notifications. To be safe I think I'll be holding off on using paypal for a week or 2 and leave my accounts info blank for that time. Interestingly Outlook said that it was a trusted source despite their sender name being PayPai Service except with a capital i to make it look like an l
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