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One of my production server emails look like to be spoofed from another network. The team (group or individual or professional company) is sending mass mails out to their list of users, using our email addresses. And, I am receiving a lot of fail back emails.

The hosting provider sysadmin team did not find out that those emails were originated from my domain/server. There are about 400 - 1000 emails a day returning back fail failed delivery.

Should I have to worry about the server being low reputed because of this kind of illict activity from thrird party? What is the way to discourage them? There is probably no chance that I can trace out how many successful spoofs were generated. I am getting only those emails that returned back to the soft catch-all email account.

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You can use Sender Policy Framework (http://en.wikipedia.org/wiki/Sender_Policy_Framework) to publish data in your DNS, which basically announces what IP addresses e-mail sent with your domain will legitimately come from. There are a bunch of caveats that you need to be aware of, such as what happens with e-mail forwarding and in case external services are legitimately using your source-domain, but it'll be come clear as you do your research on this technology.

This will of course only work if the receiving mail server uses SPF as part of its anti-spam efforts.

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