It is the gullible that inflate those numbers because of "successful" phishing scams - and create more news for the media to sensationalize.

I have been using PayPal almost since its inception. I receive payments monthly from two online galleries where I display and sell my landscape/seascape photography. I usually have several thousands of dollars in transactions via PayPal each year, but not quite enough to trigger their 1099 tax reporting. I trust PayPal enough to not only use their credit card, but also to keep a saving account with them (currently paying 3.8%).

But, one must remain vigilant.