Squirrellmail user account compromised

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I am using SquirrelMail version 1.4.8-21.el5.centos for webmail and one of my
users when trying to send email via webmail it does not send using his real
account but instead the is what his recipients will receive in their inbox; 

Email address: Mrs.Lola Sanchez <info@xxxxxxxx>

Message body:

Dear Respected

I am Mrs.Lola Sanchez,manager bills and exchange at the foreign remittance
department of La_caixa bank Madrid.I have a business suggestion for you.It
involve the transfer of($ 15.2 million US Dollar).if interested please reach
me on(mrslolasan003@xxxxxx) with more details of this operation.
Kind Regards,

Mrs Lola Sanchez.

However this does not happen when he is using Microsoft Outlook 

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