It has to be both. It has to be. AFAIK, I haven't done anything illegal, against the TOS, and I get money in my paypal legit and I take it out legit. I have a feeling that most people who are claiming paypal scammed them are engaging in some shady businesses and transactions and then when their accounts get frozen or suspended, they just call it paypal scamming them. Not saying companies aren't capable of being corrupt, but I think for the most part, these sort of cases are occurring because they are doing something that is flagging their accounts. As long as you are following the rules, Paypal has been one of the BEST places to do business. It's so easy and convenient. I've never needed to or bother to look into other payment services. That's how satisfied I am with Paypal for 18 years.