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How did the scammer close the ticket?

Zero day on Paypal? Unlikely for a lowly FB scammer to have this.

SMS hijack? Unlikely the OP would have noticed.

Phishing? Maybe… could have been a sophisticated phishing attack. Maybe using those fake package delivery SMS messages.

I'm assuming paypal customer service just needs name, address, and phone number to fully authenticate a caller and perform all actions.

They may have a person on the inside.

Whats disturbing is Paypal didnt investigate the issue at all.

In this case, but we aren't aware as to whether this got investigated later. I imagine any issues where they lose money they will follow up on.