In my business I've sold and shipped all over the place, including Bulgaria, Romania, Russia, China, Singapore, Malaysia, India, UAE, Oman, Serbia among others that you might also hear some scams coming from.

It seems like in your case the con wasn't very sophisticated and in fact pretty easy to deal with. You likely did the best thing by simply canceling the payment. I've also read of too many PayPal horror stories - their service as a middle-man doesn't make the selling/security process any easier let me tell you.
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Bruno
Twisted Melon : Fine Mac OS Software