When trying to open an attachment in Microsoft Outlook, you receive the following error:
Cannot create file: FAX.TIF. Right-click the folder you want to create the file in, and then click Properties on the shortcut menu to check your permissions for the folder.
In my case, it was a TIF file; the actual error will reflect the type of file you are trying to open.
The solution is to empty the Outlook Secure Temp Folder:
Source 1: Microsoft Answers
Source 2: How-To Outlook