The application probably isn't a virus but rather spyware designed to moniter surfing, passwords credit card numbers etc and then report them back to the scammer on its own.
It's bogus. You'll also see these from "ebay" from time to time. It's clever scammers trying to get your personal info so they can hack your accounts. Paypal and/or ebay will never send out emails, to my knowledge, asking for personal info or updates.