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SQL Server remote backup failed, need help.

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During month end, I usually run a full backup of our ERP database before I finish any other tasks. I went in a my manual backup failed with the error:

Cannot open backup device. Operating system error 1326 (Logon failure: unknown user name or bad password.)

I start looking into it and I notice that our hourly transactional backups stopped running around 3PM with the same error message.

Here's our setup.
SQL Server:
SQL Server 2012 R2 running on Windows Server 2012

Backup/Storage:
FreeNAS 9.1
The storage is shared as a SMB share

I can manually navigate to the share on the server. I went in to SQL Server configuration thinking it's a SQL Agent issue. I noticed here that it's running as Local System account (not on a domain account). I don't believe this has changed, though, I think that's the way it's been set up for a while.

So far I've tried...


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