Automic Admin was running into the following problem:
U00050037 SMTP Server '<servername>' replied with Error '530 5.7.57 SMTP; Client was not authenticated to send anonymous mail during MAIL FROM'
Release : 12.3
Component : AUTOMATION ENGINE
The errors in the log showed the following error for the login object as well:
U02001007 User '<username>' is unknown or an invalid password has been provided.