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Did Ebay / Paypal forward the fraud information onto the bank?

Did the police do anything?

It really sucks that the seller took the hit. Who should? The credit card companies? The banks of the scammers?

Credit cards and Paypals both take a piece of a transaction fee and creating an illusion of a safety net is cost of doing business to them. Paypal has a much better chance of having direct contacts with fraud departments of other institutions than individuals do, so they should take it upon themselves to sort it out.

Of course Im not being objective here, but their Seller Protection wording could be a lot more forthcoming in communicating the lack of protection for this case.

The scammer should take the hit.

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