"At this time I really need your utmost attention to resolve this mess and all I need is some loan to sort things out," it read.
"I promise to refund you every dime owed as soon as I get home. Please write back so I can let you know how to get some money to me."
Mr Davy described the experience as "disturbing" and said Telecom had managed to change the details on the account, although he has lost everything in it.
"It's like when you know someone's been through your house," he said.
Telecom spokeswoman Anna Skerten said reports of email hacking were rare, but there were viruses that could access email addresses remotely.
She said the company offered a free security program when customers signed up for broadband if they used Microsoft Windows 2000 or later.
"All we can really advise is customers use their diligence and protect their email passwords," she said.
Scamwatch spokesman Alastair Stewart said they regularly received reports of scammers obtaining access to personal accounts and using those in an attempt to trick friends and family.
"The scammers normally claim they are in financial trouble while travelling, or that they have won an amazing prize and you can too. They use hacked email, instant messaging or social media accounts," he said.
"To protect your accounts use a strong, random password and change this regularly. Protect your computer by installing up-to-date firewall, antivirus and antispyware software."
He said people should always be wary if approached online for money online, even if it appears to be from a close friend or relative.
Signs of a scam can include poor English or a request to transfer money through wire services, such as Western Union. "If in doubt, contact the account holder directly to confirm whether the story is true or not."