Yes, and No warning is issued – in fact, it’s against our Legal Agreement to access PayPal via a proxy, and can result in your account being limited and/or permanently closed.
Section 9.1 Title: “9.1 Restricted Activities. In connection with your use of our website, your Account, the PayPal Services, or in the course of your interactions with PayPal, other Users, or third parties, you will not:”
“q. Take any action that imposes an unreasonable or disproportionately large load on our infrastructure; facilitate any viruses, Trojan horses, worms or other computer programming routines that may damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or Information; use an anonymizing proxy; use any robot, spider, other automatic device, or manual process to monitor or copy our website without our prior written permission; or use any device, software or routine to bypass our robot exclusion headers, or interfere or attempt to interfere with our website or the PayPal Services;”
This only bans anonymyzing proxies, not all proxies. Further more, VPNs are not proxies – the technology is completely different. Even if this statement banned all uses of proxies (which it does not) it would not imply any ban on VPNs within PayPal’s User Agreement.
So, it would not appear that use of VPNs or non-anonymizing proxies for accessing PayPal for legitimate purposes is in any way against the terms and conditions. Perhaps the legal agreements have changed since the Administrator’s post in 2011?
However, I suspect that the VPNs and/or proxies might be triggering fraud monitoring/fraud detection tools. That might be where the additional security issues come in?
You can read it yourself from PayPal employee here: https://www.paypal-community.com/t5/Account-limits-and-verification/Virtual-Private-Network-proxy-use/m-p/284318#M3783
