I had a very similar situation with a cousin of mine who lives in NY.
Got an email from her saying that they took a trip to the UK, and she was mugged outside their hotel, couldn't pay the bill due to stolen credit cards, the hotel won't let them leave without settling up, doesn't have her cell phone, so can't call anyone, so on, and so forth...
I immediately called my cousin's cell phone, which she immediately answered saying, "No, we are not in the UK!" LOL But it was no laughing matter... her email had been hacked (obviously) and she was in the process of fielding all the calls she was getting from the email that went out to her contacts.