I had this for a couple of days at the beginning of the year on my hotmail account. I was inundated with undeliverable messages and one message from somebody complaining about what "I" had sent. I apologised, explained that it wasn't me, and advised them that responding to spam wasn't a good idea.

I also complained to hotmail because I was worried this meant that someone had access to my account -- which has some very personal stuff on it. This is what I got back:

Hello bingley,

Thank you for writing to MSN Hotmail.
I'm Davie and I am responding to your complaint that your account is being used
for spam.
I apologize for the inconvenience you have experienced. I can understand your
concern on having your address associated with unsolicited emails.
I have researched your account and it appears you are the only person logging
into it. For security, we would suggest changing your password and Secret
Question/Answer at this time. A good rule of thumb is to change your passwords
regularly.
Someone has forged, your e-mail address as the 'reply-to' or "from" field on a
piece of unsolicited e-mail. This does not require the person to log into the
account. Most likely, it was either a typographical error on the sender's part."
Should you have other concerns please feel free to contact MSN Hotmail Customer
Support again.


Sincerely,

Davie
MSN Hotmail Customer Support




Bingley


Bingley