There are a number of viruses which infect OTHER machines and have the ability to grab ANY email address on that machine and place it in the "Sender" line.. Once that's done, mass infected emails are sent out with YOUR NAME in the sender line so it looks like you're sending the message but you are not.
Please tell us exactly what type of headers were on the message that "one of my friends" received.
At this point, you may want to contact Hotmail and cancel all accounts under your current username and inform them of your fears.. You state the hacker "made a new account under my name" and sent things under a "made up account". Since Hotmail will only allow one account by one username, is the other account on some other internet service provider?
Please explain clearer as to why you haven't canceled all of your current email accounts and started from scratch?
By the way, "finding" the hacker is next to impossible if they're any good. Spoofing of IP addresses is common as do various zombie machines which also run into a dead end.
Hope this helps.
hello. My hotmail was hacked about a month back and old emails were reformatted and sent to all in my address book. first it was sent from a made up account. then this person made a new account under my name and sent the email again to all my contacts. this person did not change the password for my hotmail at all and i didnt know of this until one of my friends told me that they had gotten such an email. I have found the IP address, but its just one of the local internet providers. What else can I do to find this person?