I don't get how you think your identiity has been stolen from this? Looks like they got into your paypal all Walmart account but that's about it.
Walmart said I was pre-approved if I wanted the card, and I decided that I did want it. So they sent out via postal service. I had not used it at all when this PayPal thing cropped up. I have cancelled the card, and I am calling all to whom I have given my card so they know not to charge anything until they call me.
Walmart has done nothing wrong, and I am not being scammed by them.