Instead of using the tired old method of pretending that some security breach has compromised your account details, and trying to get you to head off to the phisher's web site to "reconfirm" your passwords (and for them to then use them to ransack your accounts), this one plays on that most primal of human natures: greed.
It's quite a simple scam, really. You get a mail that looks like a standard PayPal payment receipt, indicating that someone has sent you a trivial amount (£12 or $12 seem to be the usual amounts), and that you should claim the money the usual way. Click on the link in the mail and you're off to a reasonable facsimile of the PayPal site - but of course you're at the phisher's site, and he wants your username and password. There's no money - it's just bait.
If you're not expecting a PayPal payment check any mail that claims to be a payment very carefully before clicking. What may appear to be to good to be true is probably going to cost you a lot more than that windfall of £12 you've been promised...
Oddly the latest fake name used by our not-so-friendly phisher appears to live at "Hacktor Way". Only goes to show...