I have been reading that there is a loophole within PayPal when you submit payments. Is there any way to overcome this problem or catch people who exploit this fraud?
There are tons of loopholes in paypal, just visit Http://Justgotscammed.com/paypal.html , the best way to make yourself aware is figure out who you are dealing with and if anything sounds way too good to be true, then it is .
Sounds like you are new to paypal mate. Better you read their terms and policies and also do a search on this forum, you'll get to know the Do's and Don'ts. if you are planning to sell with paypal.You must know, whom you are selling.