Just to clarify this.... I mean that I've encountered no incidences of fraud by xCoins.io. There are indeed incidences of scammers looking to steal Bitcoin by initiating a dispute with PayPal after receiving their BTC to try get their $ back through charge-backs. However, the buyer verification process on xCoins is pretty good.

It appears that PayPal accept the evidence package provided by xCoins (photo ID, digitally signed contract, blockchain transaction details etc) and sides with the seller in many of the disputes. Whether the scammer wins or loses the dispute, they will be banned permanently from xCoins and will probably have their PayPal account flagged as a potential fraudster, thereby limiting their chances in future. Occasionally a report will be filed with local police/authorities and legal proceedings may ensue. All this helps to make the platform unattractive to fraudsters, as I don't think they can do well at xCoins, and results in an acceptably low (personal opinion) charge-back rate. It will happen though. xCoins will refund some of the disputes that you lose (as part of their 50% profit margin guarantee program), but sellers need to consider the implications of this.

For buyers, there is almost no risk IMO. Buyers pay by convenient methods such as credit card or PayPal. xCoins acts as an escrow service - once the seller receives the PayPal payment, xCoins releases the Bitcoin. The lender cannot prevent this and it is mostly automated (the funds are generally captured automatically in PayPal and the BTC released). This makes the system particularly safe for buyers.