ANSWERS: 3
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Almost surely its just a phishing scam. Delete it, then log in to paypal by typing www.paypal.com into your browser. If they have any messages for you you'll find them there. I get about 10 paypal scams a day by email, most of them get caught in the spam filter. Its a very popular phishing scam.
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Darryl61 is absolutely correct! Whatever you do don't reply to it. I've received several of these and continue to receive them. Whenever you get one, just forward it to the spoof addresses Darryl61 gave.
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This is a common and popular scam. eBay and PayPal are the subject of several phishing emails right now. They ask you to click a button and solicit your personal information in order to "verify" it. If they get it, they've got the key to your identity. Other emails to look out for include an eBay mail asking about an auction you currently have going (when, in fact, you don't have one), and an eBay mail stating your check has not been received yet (when you never bid on an item). There is also an IRS mail going around stating you are entitled to a refund. All of these are attemtps to gain your personal information. You can report the PayPal and eBay mails to spoof@ebay.com or navigate through to their security. As always, common sense should prevail. If you didn't bid on an item, you don't owe money; if you don't have an account with a particular bank, the account info can't be wrong; if you didn't play the Italian lottery, you're probably not the winner. ANY email offering money in any manner is a scam. ANY email asking for information of a personal nature is a scam.
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