I think I'm being scammed on paypal?

Okay, I'm selling this on iphone to someone on craigslist and they said they would send me the money, so a couple minutes later I get a email from paypal saying they need a tracking number and that they're holding my money in a escrow account, I don't know it just sounds odd to me.

That is odd - Paypal has been known to hold funds for a couple weeks, especially on larger transactions. You should call paypal and see what's going on. But in the future, you should only deal in cash with Craigslist people - it saves a lot of headache, hassle and potentially bad situations.

That is a scam. The email is probably a spoof that looks like it came from PayPal. A tracking number proves nothing since you can send an empty box. Sign into PayPal. If there's no indication of the money you have not been paid.

PayPal only holds money from first time eBay sellers.

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SCAM - that is NOT from Paypal. It's a spoofed email. Paypal does not EVER ask for a tracking number before the transaction appears in your account and DOES NOT offer an escrow account. If you go to Paypal.com and there's no money either IN your account or PENDING in your account, it was never sent

Forward that email you got to spoof@paypal.com and DO NOT write back to the buyer

This is why Craigslist very clearly warns users to ONLY deal with people you can meet face to face, NEVER give out your Paypal details to anyone and AVOID all transactions that involve shipping. This fake Paypal scam has been going around more than 5 years
http://www.craigslist.org/about/scams

To protect yourself, change your paypal email As soon as possible. These scammers will now use password hacking software to try and hack your Paypal account

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