Comment by Huxley1

I’ve had similar PayPal chargeback issues before, where bots were testing stolen credit cards. We added CAPTCHA to the payment form and monitored suspicious IP addresses, which helped stop many of these attacks.

We also started temporarily holding PayPal funds until we could manually verify transactions, preventing a lot of small test chargebacks.

Finally, contacting PayPal's Merchant Services team really helped us reduce fraud significantly.