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It's been a while since I've completely lost a pw, but last time I checked it was fairly common to lock accounts out temporarily when the incorrect un/pw are entered a few times.
I have never seen this notification with Steam.
There has to be something -- either account locking -- or captchas. I suspect Valve went with the Captcha because account locking would trigger a tidal wave of support tickets.
It might not be the best solution available but maybe is the best we can expect? Don't know. Maybe others can weigh in.
I've gotten it when I failed on my password twice.
I got it logging in through the laptop from which I most frequently log into Steam (for purchasing my games, checking my feed, etc.) today. It's the first time I've ever seen it, as I ask Steam to remember my credentials, and I rarely log out, so it's possible it's been going on for a while. Every once in a while it asks me to login again, and today was that day.
I'm hoping someone can convince me that this is actually a necessary measure. You may be right though, and it's not THE solution, but A solution, and the one that is most convenient for Steam.
I think we can agree it could be done better. No question. Whether temp account lockouts or something else, what we have isn't the best solution.
I could see asking for a password after a set period of time...but requiring a captcha at the same time (assuming you didn't make a typo -- and it sounds like you wouldn't) seems silly.
I don't have a problem with it at all .