Yeah, Scams definitely can happen if you're not careful. I've been trading on localethereum for about a month now & i've amassed over 60+ trades. Here's my experience;
Paypal is extremely high risk. So high in fact that the website recommends not using the payment platform at all, but accepts that you're going to anyways, because that's where you can make quick money if you're careful & lucky. When i was selling in the paypal market, i kept my margins high and required ID verification on trades over $50. under $50 i let slide without ID, because nobody wants to verify their id (for their stolen paypal account) It goes without saying, charge backs DO happen. I was able to win a dispute against me for $500 because i had their ID who's name and address matched their paypal account. But this was lucky. My paypal account is now limited with $1000 in it for 180 days. But i did make a couple bucks.
E-Transfers are MUCH lower risk, especially if you ask for ID verification. Though i have heard horror stories, i have yet to be scammed once with an e-transfer. The down side, is that people aren't going to buy them for a high margin.
I've also recently started accepting Credit/Debit/Prepaid cards using Square. so far it seems safe & Square has told me directly that i'm not violating any of their terms of use by accepting money for crypto currencies, in fact they encouraged me to use their app to buy bitcoin. The staff seem A LOT more reasonable than Paypal & i have high hopes for this paytype.
In general, I love the website Localethereum. The escrow service is simple, the wallet is simple, though it can be confusing at first, Everything about the website is simple. I've set my phone up to receive notifications via SMS so i never miss a trade. I've even made a trade one time from my phone, while in the shower. it's that easy.
On top of that, the support always reply with really good responses. Never do i feel like i've just been shrugged off. They always treat me nice.
The most important part about localethereum that i think makes it great, is that you genuinely can't get scammed unless you let yourself. Your ETH is always safe. The game is so simple, just stock up while it's low and sell when it goes up.