My apple Id is already in use even though I never made one before

So I just got an iPhone yesterday , to make an apple ID I used my email address.
It told me the email is already in use , even though I never made an apple ID before but anyway it told me to change the password for it ,
So I went and did that but it seemed like somebody else had been already using my email address as their apple ID because when I went into manage account , firstly the name was totally different , the address was Canada's and a phone number was there too and security questions were asked in French.
Now that sort of freaked me out, has someone hacked my email address or what ? And why would they use my email address as their apple ID why couldn't they use their own ? This seems very dodgy someone please explain if they know anything thanks...
Btw I didn't change any information on the account yet just Incase I had to report it to apple ( and I'm still not able to use it as my apple ID)

disable the account completely and start from scratch. simple.
http://www.apple.com/support/appleid/ for more info

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