last week, my cc number was compromised and an account on PayPal setup. The person who stole the number has charged up several hundred dollars worth of services. I cancelled the card and filed an affidavit.
I do not have the number stored online anywhere so may be number was stolen by a business which I recently used to pay for a service.
Do I have any legal recourse here that I could take to recover monies?

try to find how this account got compromised and submit your evidence in court and legal system will decide for compensation.