Outlook hacked.

This can be either account compromise or email spoofing. Since people are receiving messages that were not sent, and someone is asking for money, take these steps immediately:

1. Scan the PC for malware before changing anything else
   • Open Windows Security.
   • Go to Virus and threat protection.
   • Select Scan options > Full scan > Scan now.
   • Microsoft recommends a full scan before changing the password.
2. Change the Microsoft account password
   • After the malware scan finishes, sign in and change the password.
   • If sign-in fails, use the password reset option.
   • Use a strong password.
3. Check Outlook.com settings for unauthorized changes
   • Review connected accounts.
   • Review forwarding and remove any forwarding address that was not added intentionally.
   • Review automatic replies.
   • Also check Outlook mail rules and remove anything unfamiliar that forwards, redirects, moves, or deletes mail.
4. Review recent account activity
   • Check recent sign-ins and mark unfamiliar activity as This wasn’t me.
5. Warn contacts not to interact with the messages
   • Tell contacts not to click links, open attachments, reply, or send money.
6. Treat suspicious messages as phishing
   • Be cautious with messages showing a ? in the sender image, an unverified sender banner, or a via tag showing a different actual sending address.
   • Do not open unexpected links or attachments.
7. If access to the account is lost or compromise continues
   • Use the Microsoft account recovery help flow. It can provide self-help steps or the option to talk to an agent.

If the message only appears to come from the address, that can be spoofing rather than direct account access. Outlook can mark suspicious mail as unverified or show a via tag when the real sender differs from the displayed From address.

References:

• How to recover a hacked or compromised Microsoft account
• Phishing and suspicious behavior in Outlook
• Help protect your Outlook.com email account
• Protect yourself from phishing
• My @msn.com Email Has Been Hijacked - Microsoft Q&A
• Hacked account - Microsoft Q&A