Someone has hacked into my contacts list and sending emails using my name.?

If this was through your yahoo email, then NO, you were not hacked, yahoo was. The problem comes fro IM. You were logged in and someone hacked the yahoo IM server.

Then they used your already logged in account, and a number of others, to send out spam. The solution is to simply turn IM OFF. A while ago, yahoo changed the email system and defaulted IM to being ON instead of OFF.

I do not use IM, never have, and I got hit this way a while ago. Open up your account preferences and you will find your recent log in activity. If you were hit through IM, you will see a log in for IM in the list probably from the middle east, Dubai maybe.

Anyway, find the IM feature and turn it OFF, and then empty your contact list to only include yourself. That way, you can't send out spam using you account. All of the people in your contact list came from you using email, to send or receive.

They did not add contacts. Those that you did not recognize got there through your activities. You may just not been aware of it at the time, which is why they looked unfamiliar.

And then, err on the safe side and change your password, just in case...

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