Ebay and Paypal are getting hammered by hackers and scammers. Many are outside the states and minors so it's hard to prosecute. If you buy something for $200 and you're in NJ and they're in FL, is it really worth the trip to file and go to small claims court? That person in FL knows that and they can sell a few hundred $200 products.
And Paypal, up until recently, was little more than a money transporter, i.e. if you didn't receive a product bought with it, you couldn't file a chargeback with your CC company as Paypal had completed their agreement - they sent the payment, which is all they said they'd do.
The vast majority of the sellers and buyers on Ebay are still honest, but I used to buy a lot of things (read: junk
) on Ebay, and I've read too much to trust it until they put more stringent fraud controls on it.
