Returned Email ~ Hijacked domain?

By jaca_4 ·
We receive large amount of failed emails being returned. After reading some of them I see that they are being sent by a fictious user with our domain.

such as:

I'll get Mailer Deamon - Failure Notice and System Administrator - Undeliverable email bounce backs to the Administrator account. These emails are all spam emails that are being bounced back by spam filters on the other end.

I can filter them out, but I am wondering if there is anything else that can be done. I've done all viral scanning and system updating on the server also.

The email is held at the ISP until the server requests it then is distributed to the users.

SBS 2003 SP2 system with XP Professional clients.

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