Got scammed and would like your advice or opinion!

A new “client” stole someone’s credit card and purchased a cake from me. I was paid through PayPal and after their investigation, they reimbursed the woman whose credit card was stolen and they deducted the amount I was paid for the cake. I don’t think I should be penalized as I was a victim, too. I was told I should contact my Victim Services unit through my prosecutor’s office to try and get reimbursed but I have had no luck. Has anyone else gone through this?