I have a Paypal account and use it quite often associated with my eBay business. A few times I have gotten suspicious email supposedly from Paypal. I always go to my Paypal account and forward these emails to their fraud department.
I just got one in my email today, forwarded it to Paypal and sure enough it was phishing. Here is Paypal's answer to my email forward.
Quote:
Thanks for taking an active role by reporting suspicious-looking emails.The email you forwarded to us is a phishing email, and our security teamis working to disable it.
What is a phishing email?
Phishing emails attempt to steal your identity and will often ask you toreveal your password or other personal or financial information. PayPal will never ask for your password over the phone or in an email and will always address you by your first and last name. Take our Fight Phishing Challenge at https://www.paypal.com/fightphishing to learn 5 things you should know about phishing. You'll also see what we're doing to help fight fraud every day.
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Just a warning to never give out information or click on a suspicious email link.