This just happened ( 7/25/2018) to a small business for whom I do the accounting. I noticed that several other people in this community forum have had this issue. You cannot report it thru the Paypal Resolution Center as there is no associated activity in Paypal. When you call Paypal ( yes it takes ages!) they say it is not their problem; it is someone pretending to be Paypal. I just reported this to the FEDERAL TRADE COMMISSION Consumer Assistance Reporting site. In this case it was $6.99 but I was furious that these scammers have gotten away with this and have not been caught yet. I would encourage anyone who has had this problem or has it in the future to report it thru the same FTC Consumer Assistance reporting process. You need to pick "scams" and "imposter scams". Some questions don't apply so leave blank ( they don't tell you this unless you chat with them). If we all report it, maybe something will happen and the scammers will be caught. I have no idea how they got the debit card number but it could be a random number generator that strikes gold once in a while. You would think that Paypal's fraud detection unit might have some interest in preventing someone using their name!
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