This is an awful thing to happen, and I'm sorry to hear about it. Hope the good people on here can help to sort it.
But, stressful though it is, it's maybe not a big enough reason to quit your business. Try to work through it.
Several months ago some evil scum went phishing, using my name and a fake email address disguised to look like my main one (not related the site in my sig). They were asking people to act as our agents and receive monies on our behalf. Yeah, right, like a reputable company doesn't have its own bank accounts and means of receiving payment.
We investigated the issue to the best of our ability. One of the email providers - I think it was Hotmail - wasn't helpful at all, and wanted all kinds of documentation before they'd even look into it. However, we did discover that some people were duped by it (by posting prominently that it was a phish) and we managed to contact them before they parted with their bank account numbers or any other personal details.
The way we were alerted to this scam was because someone was suspicious and contacted us directly via the contact form on our website. You can do all sorts of things to protect people from these scams but the bottom line is that even the biggest sites (eBay, the major banks, etc, etc) suffer these kind of attacks. To some extent site visitors must look out for themselves.
That said, if you were fairly new with your Internet business, you might not have realised how many nasties there are out there and been horribly shocked at something bad done in your name.
Again, I'm sorry to hear it and I'd love if this type of scum could be banned permanently from the Internet - but it's not likely to happen in the near future.
Pick yourself up. Know that it wasn't your fault. And go out and fight another day.
Best of luck!
