Always make sure if you are a seller, that you check that the buyer's address is a paypal confirmed address before proceeding with transaction & if they are not you will not be eligible for protection coverage..
When receiving Emails always check your Browsers address bar and look for any irregularities..
when receiving suspicious spoof emails do not click on any link as some of them can be spyware..
If you get any suspicions always try to comminicate with buyers and paypal if you must ...
Paypal is a safe system ONLY when you check that every transaction you make can offer payment protection. like checking for a confirmed address And that it matches buyer address also that you TRACK items Like example :- Special delivery
which also offers £500.00 compensation for each Item.
I will Update you soon with further INFO regarding this plus other Real life experiences trading ONLINE