There's a lot of wrongdoings here. I suggest that you better go and make a report at the police station. PM Apis and the others to help you out as soon as possible.

Fraud, identity misuse and so on will really damage your reputation and get you into a lot of trouble from Paypal, Ebay and so on. Once you are blacklisted, you are screwed until you can clear your name.

My suggestion now, make a police report with all the details, the cyber police department as well if possible then send all the details to ebay, paypal and others with hopes that they'll be able to help you in some way.

Good luck man.

Reporting is the best option for now like what others have pointed out. It should be done to avoid more troubles later on. Just in case this problem get out of hand. News in forums in other countries will spread like wildfire and from there, things will be circling around on the Internet.

Still, the last choice is up to you. Good luck in clearing your name and stuff man.

From my "research", his name is seriously tainted not only in the US forums. Right now, not only him but the other names that "I don't know who or how or where" that the guys in those forums got them. He needs to be taught. Not the soft way but the hard way.

This I agree. You are not actually "helping" him here. Call the parents, make a report and stuff. It can be "small" for now but when he got the taste/hang of it, it'll get worse. There's no helping him by then. More victims would suffer in the end.