Judy - what you got was a 'phishing' email. Someone was faking an email from PayPal trying to get you to log into a fake PayPal site to 'confirm' your account information.

Once you leave that for the bad guys, they go the real PayPal account and take all the money.

You did the right thing by doing nothing. And you'll note that paypal did not suspend your account either. But that experience caused you to lose confidence in PayPal.

PayPal does not send you links. They ask you to sign into your account at PayPal.

Although it's not obvious, if there is a link in the bogus email, you can place your mouse pointer over the link (don't click). Chances are you will see a link that does NOT match the printed one in the email. It MIGHT contain the word "ebay", but it's not the domain they are trying to get you to go to.

Again, PayPal uses your real name in the body of the emails they send you. Most Phishing emails don't know your name, just your email address.

Someday, there is going to be a revolution on the Internet - one where the good guys stop allowing the bad guys to do this.

A first step would be to create a way to confirm the domain of the sender and that it matches the name/email address being used in the outgoing email.