Ebay and Paypal together have created a system to facilitate and encourage scams.
Ebay recommends (and possibly makes in mandatory) that the buyer can purchase using Paypal. Ebay also suggests a shipping option of local-pick-up. If an item is picked up locally, Paypal does not protect the seller if the buyer requests a chargeback. Any buyer can purchase and item using Paypal, pick it up, the request a chargeback and Paypal will do this without asking many questions to the buyer and in complete disregard to what the merchant states. It is fraudulent that Ebay suggests both local-pick-up and pay by paypal when any person can use this method to scam with no protection or any notice of potential problems to the seller.
Here is my story. I recently sold a computer on Ebay for $800 for local-pick-up since I lived in the center of a metropolitan area. The buyer used Ebay's "Buy It Now" feature to pay $800 using Paypal. The money arrived in my Paypal account. I then transfered this $800 out of Paypal to my bank account. The buyer came by the next day and picked up the computer. Two weeks later the buyer retracts their payment saying the item was never received, Paypal has given the money back to the buyer and is requesting that I put $800 back in my Paypal account to cover this retraction. I have contacted the buyer through Ebay and Paypal contact's feature and the buyer said their Ebay and Paypal accounts were both compromised (hacked), they never made any purchase, and who ever came to pick up the item was not them. Paypal states they are not responsible since I can not prove using a shipping label that the buyer received the item. Ebay says it is not their problem because they simply facilitated the listing and bidding on of an item.
The problem is that Ebay suggested local-pick-up as a delivery option and allowed the buyer to pay via Paypal knowingly that Paypal would not take any responsibility if there was a problem. These companies are facilitating fraud since if someone illegally logs in to both your Paypal and Ebay account and purchases something, neither company will take any responsibility if there is a problem. More safety regulations protecting the seller and buyer are needed.
Obviously, I have filed a police report against both the person who picked up the item and Ebay.