I just know you guys are the ones to ask about this-
I got an email in my inbox today, saying I have successfully added an email address to my PayPal account, but that I have to confirm it by clicking the link.  

I don't have a paypal account, and never have.

Normally, I'd just delete this as a spoof, but the account has my correct name on it.  So this makes me a little nervous.

I'm on the phone with Paypal as I'm typing, but it's tough to get through to anybody.

Any ideas on this?

Yes, that was my first thought, but unfortunately it's real.  I just got off the phone with Paypal, and yes, somebody opened an account in my name.

About a week ago my credit card company called to tell me somebody had stolen my card number.  I know they got it via the web.  No big deal.  I'm not liable and the card was discontinued.  The thief had made a few charges, mostly in Ireland, the UK, Scotland and Luxembourg.  (I live in upstate NY)  Mostly for escort services and computer parts.  Boy, I sure had a good time in Europe!  

I just explained all this to paypal and the lady on the other end of the phone said that to close the account I needed to verify the last four digits of the CC, which I did not have to hand at that moment.

She said not to worry though, as she had marked the account so that in order to use it, the owner must now send photo ID, Soc Security number or some other form of ID to verify it.

I'm also hoping that since my card has been cancelled, that kills the account.  But I'm still worred because I know nothing about how Paypal accounts work.

Would the CC being cancelled kill the account?

You NEED to call paypal back and have them close that account. Also, send an email (with confirmation if you can) and clearly indicate the circumstances of the issue.

You need a paper trail on this. Just because your cc is closed, means nothing to the account. That bozo can run up some charges and the next thing you know paypal is coming after you.

You did the right thing by contacting them, but they let you down with their lazy answer. Call back and demand to talk to a supervisor. I think they will be more agreeable. If not, tell them you are contacting the credit card company and whatever other banking institution affiliated with that account and that you are documenting the fact that they are leaving the fraudulant account open.

Now I really don't want to make paypal out to be the bad guy here. But they are not doing you any favors either. The real crook is the guy who stole your card/identity. That POS should have the shit kicked out him then tossed into the crappiest jail available. We are way too soft on this type of crime.

Thanks for the info folks, I really appreiate it.  Once again it pays to lurk and post at the acaeum!  

I did go in and try to close the account myself.  After all, it's "my" account right?  

I went to the sign in screen and clicked the "forgot my password" option to try and have the password sent.  I received the email to reset it, but it asks for a security question, such as my pet's name, mother's maiden name, etc.   Of course I have no idea what my doppleganger used for this so that foiled that plan.

Then I got on the Paypal website and filled out a form explaining my problem and sent it off to their customer service department.

Waiting for an answer on that.

And yes, the card is cancelled, so thankfully that isn't an issue.   But I am a bit worred about this paypal account.  As I said, I have no idea how they work and as Bbarsh says they might come after me for some kind of charges.

And YES, these people should have their a$$es kicked and their hands broken with a sledgehammer so they can't steal anymore.  (Internet thieves, not paypal)

I have received Paypal's reply.  Note the terrible spelling and grammar:

**Hello my name is Randy, I am sorry for the delay in responding to your
inquiry. We have recently encountered a large volume of emails. We do
not intend on any customer waiting this long for a response. Please
accept our apologies.  I will be happy to assist you in getting this
issue resolved quickly.

I understand your frustration regarding this issue. If I understand you
correctly, you want to know what happen to the account from where your
credit card was attached.

Please do not be weary we have locked the PayPal account from where your credit card was attached to, please be informed that there is no way for the person who used your credit card can make any purchase online since the account is locked by our system.

Please coordinate with your credit card issuer regarding the reversal of
charges made on your credit card, they will assist you further on the
steps.

I would like to let you know that you are valuable to us, and it is
always my priority to help you resolve your concern. If you do feel that
this information is not enough, please do not hesitate to email us back
or call us at 1-402-935-2050 so we can assist you directly.

Sincerely,
Randy
PayPal, an eBay Company **

Well, hopefully that settles that.