[Exim] exim 3.22 not asking for id/pass to send email, somet…

the following results in email being sent

"telnet myserver 25", "HELO world", "MAIL FROM:<evil@spammer>", "RCPT
TO:<a@???>", "DATA", "Subject: spam test", "", ".", "QUIT"

however, exim is setup to make the sender enter an id/pass. Netscape is
my mail client and it pops up and asked for and id/pass when I send the
first email of a session

please comment.