Our small non-profit has this problem as well. We are not using a form on our website in which to add a captcha to. We are using a PayPal button on our site which directs to a form?, on a PayPal domain, where the fraudulent charge is occurring. Perhaps PayPal could implement the reCAPTCHA, similar to the one below for submitting a comment, or perhaps a "donations under $5 cannot be refunded" policy. We do need this taken care of soon so we are looking into all of our options.
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