Update: I disputed the payment with Google Pay and they "found that no system error or other unauthorized activity was connected to this transaction, so we can’t take any further action."
It's hard to believe that Google Pay can't look into the scammers account, see multiple transactions for the same amount, and then freeze the user account until the issue is resolved. Fraud is happening on their site, and they turn their head the other way and say that the system is working properly. If it was PayPal, I bet this would have been handled much differently.
I filed a fraud claim with my bank, I hope that they will be able to look into it and try to stop this scammer.