someone DOES have the same hotmail email address as me, this is a security issue

I had received e-mail form businesses in the area of California that this person lives in the last few months ... Please explain how this can happen.

Many people are careless when entering information into forms at websites. They intend to type their own email address but type yours instead, and don't notice that they've done so. Mistakes are also often made at one end or the other when giving email addresses over the telephone.

I just blocked them and thought no more about it until today.

That's a pretty brutal way of dealing with it. It would perhaps be more good-neighbourly to inform the sender that his message was sent to the wrong address.

Please read my earlier post about this phenomenon.

I received an e-mail notice from CSID today advising me to login and check my account for a cyber breach. I logged in and found that someone in California is using the exact same Hotmail address that I have used for years. I had received e-mail form businesses in the area of California that this person lives in the last few months. I just blocked them and thought no more about it until today. Please explain how this can happen. Thank You.

What do I need to do? , I am planning to close the account but I have got loads of private information which need to be exported. Is it possible to export all my folders to my other account?

Yes you can, but you would be better off searching for answers to that particular question and if you can't find them then post a new question asking just that. People really won't see your question here.