I would advise you contact Paypal in order to have the charge to your account reversed, if at all possible. If you're concerned about your Paypal account being breached, at the very least change its password. Contact them about the potential fraud. Also, contact Microsoft about the domain. The scammers are using the good name of Microsoft (ie its trademark) to promote their scam and cause people to trust them. They ARE NOT Microsoft.

If you used Paypal to pay for their software, they did not receive your credit card information.