Paypal can't stop it unfortunately, they can close the site, but they'll just use another, people just need to be aware and if in doubt, don't click the link, go to Paypal using your normal method and check to see if anything unusual is happening on your account.
PS. Beware of fake redirected paypal and bank pages, had one a couple of weeks back, typed in what I thought was my bank name, but must have typed a letter incorrectly and ended up on a copycat site which was pretty much identical to my bank. Fortunately I realised after typing in a username and password and called my bank who shut down web access to my account and their security shut the slightly differently named website down within five minutes. Trouble is, it took over a week for them to send out new access details, so keep an eye out.