Okay, so if it happened to the Queen of Flimflammery - it could happen to you -
So I get this official looking email from "paypal" and it goes something like this...
(I forwarded it from my business email and while it did not transcribe exactly into the journal as I opened it from there - you at least get an idea..)
Make no mistake, the email looked EXACTLY as if it came from paypal.
-----------------
Forwarded Message:
Subj: Quarterly Statement Notice
Date: 5/11/2005 7:23:21 AM Eastern Standard Time
From:
To:
Sent from the Internet
<!-- TD { FONT-SIZE: 11px; FONT-FAMILY: tahoma,sans-serif } -->
Dear Paypal valued member,
Due to concerns, for the safety and integrity of the paypal
account we have issued this warning message.
It has come to our attention that your account information needs
to be updated due to inactive members, frauds and spoof reports.
If you could please take 5-10 minutes out of your online experience and renew
your records you will not run into any future problems with the online service.
However, failure to update your records will result in account suspension
This notificationexpires on May 12, 2005.
Once you have updated your account records your PayPal account
service will not be interrupted and will continue as normal.
PayPal, Inc.
P.O. Box 45950
Omaha, NE 68145
Sincerely,
PayPal
Security Center If you receive an email and are not sure whetherit is from PayPal, go directly to the PayPal website. If we need information from you, we will request it after you've logged in to your account.
PayPal occasionally sends you email to renew your account information for security reasons. 
Please follow the link below and login to your account
and renew your account information
(I removed the hyperlink)
https://www.paypal.com/cgi-bin/webscr?cmd=_login-run
Copyright© 2005 PayPal, Inc. All rights reserved. Designated trademarks and brands are the property of their respective owners. PayPal is located at 2211 N. First St., San Jose, CA 95131.
Well, it walked like a paypal duck and smelled like a paypal duck, but still, I'm was not sure - and being the cautious and most suspicious Queen - I did NOT click on the link, but instead went directly to the paypal site and logged in and then forwarded it to the real paypal watchdogs...at spoof@paypal.com with a note: "real or fake, please advise."
and this is what they sent back:
-----------------
Forwarded Message:
Subj: RE: Q510 - Thank you for your email to PayPal (KMM11500424V56194L0KM)
Date: 5/11/2005 8:02:12 PM Eastern Standard Time
From:
To:
Sent from the Internet
Dear ,
Thank you for contactingPayPal.
We appreciate you bringing this suspicious email to our attention.We
can confirm that the email you received was not sent to you by PayPal.
The website linked to this email is not a registered URL authorized or
used by PayPal. We are currently investigating this incident fully.
Please do not enter any personal or financial information into this
website.
If you have surrendered any personal or financial information to this
fraudulent website, you should immediately log into your PayPal Account
and change your password and secret question and answer information. Any
compromised financial information should be reported to the appropriate
parties.
If you notice any unauthorized activity associated with your PayPal
transaction history, please immediately report this to PayPal by
following the instructions below:
1. Log in to your account at https://www.paypal.com/ by entering
your email address and password into the Member Log In box
2. Click on Security Center at the bottom of the page
3. Click on the 'Unauthorized Transaction' link under the Report a
Problem column
4. Please follow the instructions in order to access the appropriate
form
If you have any further questions, please feel free to contact us again.
Sincerely,
PayPal Account Review Department
AHA! So it was a scam, and an attempt to get information - so I thought that I would also do ya a favor and pass this information also along to you...
Take that you sneaky scamming scummy quackers!
and I am happy to oblige - 
Born today, you have been endowed with a great deal of class and stature, and you will always strive to maintain the highest degree of personal dignity and style no matter what sort of lifestyle you maintain -- by choice or otherwise. You're not the kind to knuckle under to pressures of any kind. You insist on being in the driver's seat at all times, in both your personal life and your professional endeavors. Your tenacity may well prove legendary when all is said and done.