This is known as a "spoof". The e-mail looks like it came from a trusted website (paypal, ebay, a major bank, etc.). It solicits you to click on a link, which looks like the website, where you must 'verify' your information. The best thing to do is to NOT use the link, but type in the actual website, and check to see if the email is legit.

I had this quite a few times over the past few years. PayPal states that you should forward the email to the addy that dufflebag gave us. Do Not go to the site!!! AND to delete the email right away. Notices like this also come from phony ebay, Amazon and other such sites. No legitimate site would ask for update personal info via email. I had been forwarned or I would have been caught also. The twist in another scam is to tell you you have won at an auction or sum such and they need the info billing/sending.