Ok so lets say someone makes a paypal acc with false info and isnt verified, whats the difference between being verified and not? besides the sending/receiving limits?
Sending/Receiving limits, if you post false infomation you are not obeying the TOS of Paypal. This could result in many things from the closure of your account.
A fake paypal account won't even last long once you start sending/receiving funds. PayPal will require you to send proof of ID/Bank statement in order to continue, in most cases.
With someone having a verified PayPal account, it gives a bit of assurance that the person sending the money is who they say they are (unless of course the account has been compromised) as stated, there is still the possibility of a chargeback whether verified or not.