This is actually a very late post since this actually happened last April but this is continuously happening and more people are victimized. So, let me share to you my experience and how I got my money back.
Here is an archive of my email inbox and read from the bottom to top.
I found out that there was something wrong with my Paypal account because I got an email notification that my card was removed which I never did. So, I immediately logged in to my account and found that there are no transaction history and my account is apparently unverified.
This kept me puzzled at first but later on, I realized this could not possibly be my account and my brother told me that there is no way to delete the transaction history of paypal. The hacker apparently created a new account using my email address and password which pretty much explains the missing transaction history, unverified status, welcome email from Paypal and an another email about activating my Paypal account.
So, in panic I immediately sent a report to Paypal which was very disappointing because it's so hard to make a report since you just get routed to the resolution center and have to answer the bunch of questions but still you don't get the response that you need. Furthermore, I was making a report about a wrong account because I was accessing the new account created for me.
After trying to figure out what was really happening, I realize I need my original Paypal account wherein I do not have access to it because the primary address linked to the account has been changed and so is the password. Luckily, I was able to retrieve the my account using the forgot email and password link but I couldn't totally secure the account because I can't change the security questions.
I also saw a new card has been added to the account and that there is a pending withdrawal. My heart just sank like there is nothing I could do. After 4 hours, I still did not receive any reply from all the emails I sent. I had no choice but to call the Paypal hotline which was a toll free number in the US.
Initially, I was thinking of using our landline to call the hotline but thinking about the long distance charges, I tried to call them using skype and viola! It worked. I was able to talk to an American agent who was very efficient in assisting me. He confirmed that there was indeed two paypal accounts linked to my email address. One was just created earlier that day. He asked about the pending withdrawal and I said that was not authorized so, he immediately reversed the funds and I got my money back.
Thank God I got my funds back but it was really a traumatic experience especially during the time spent waiting for Paypal customer service to open during business hours. Another thing is that I learned is that it is not safe to keep my funds online anymore thus, I withdraw them immediately from thereon.
BTW, in case you would need to call Paypal and (I hope not for the same reason I did). You just have to dial +18882211161 via skype to avoid charges and just follow the IVR.
