Yes people scam you through Paypal.

It's very old. They send you a fake e-mail that looks 100% legit saying you have a payment, and when you click the link to get into your account, it's setup to their stuff, so they get your info. One way to know is if they do it to the e-mail addy they are e-mailing you too, my Paypal address isn't the e-mail I always use, so when I get a "payment" in my non Paypal address, I know it's BS. You can copy the link in their payment e-mail and see it doesn't go to Paypal.