No it is just that if you are dealing with an unverified member then there is a much higher chance that you will get scammed by them then say a verified memeber.
PayPal put as limit on Unverified user, like only $100 sending limit, which is really quite small, and a monthly $500 withdrawal limit!! |For a verified user however limits are raised, plus its more safe to get the account verified.
Verified members give thier SSN numbers to paypal to verify thier identity and address as a us citizen, that's all. Helps when you are selling stuff also.