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Many people save the credentials to their email address on the same device as they use for gaming, which means that when that device is compromised (stolen, hacked, ...), it doesn't prevent too much from happening with that extra step.
The phone however is a separate device, that would have to be compromised as well as your steam login credentials**, which makes it a bit more difficult, but certainly not impossible.
One might also argue about emails insecurities (possibly being transmitted unencrypted etc), but as you said, the phone itself is used for other things enough to be compromisable as well.
edit:
* it isn't even that though as discussed later in this thread
** see further discussion, apparently, the app apparently has more privileges than just authentication -.-'
It's to prevent users who compromise your computer from getting your items. When your confirmations are done on a whole different piece of hardware, simply compromising your computer (and thus e-mail) isn't enough.
We already see attempts of "scams" placed on compromised account's computers:
These are placed, because they cannot get your items without you co-operating by their rules.
Also, in addition to having a PIN code on your phone, you could consider enabling Steam Family View PIN and maybe not leave yourself logged in on the Steam Mobile -app.
P.S. Most people have an e-mail app on their phone too; in which they have their credentials on. So switching to e-mail -protection would hardly fix this.
I get your point that stolen phones are a security issue; it not only affects Steam but practically everything people store on it. It's smart to have a recovery code at hand to remove the authenticator with, in addition to backup codes as you mentioned (as login tokens)
Virtual thefts are more common than physical thefts, that being said.
The Mobile Authenticator also decreases third party dependency, i.e. previous issues with providers such as AOL, Yahoo and Windows Live not receiving e-mails.
Emails are easy to replace though; the mobile auth has added the exclusion criteria of "anything other than android or iOS/supported devices" in exchange for that. Emails work on basically any device capable of connecting to the internet.
Haven't seen this before, thanks.
While that's true, the fact it's all first party with the Steam Mobile -app makes it easy to narrow down to should an issue happen. That in both a good and a bad way.
The other pro that I can imagine to using the Mobile Authenticator is, since it's a separate piece of hardware, you're excluded from cookie based New Device Restrictions should you have had it on at least the past 7 days.
http://store.steampowered.com/news/19618/
Maybe as a side note to the topic title,
Personally, having my steam account(s) mail me to an email account which is not automatically delivered to my phone nor my computer is what I use as "security".
And I still attest that this is a better layer of security than having an authenticator on a phone!
(Because, like said, most people use only the "swipe to unlock", and even if they use the pattern/pin thing, it's not uncommon to share this with friends for an example. So when at your house, both you computer & your phone there, they will effectively have "full access".)
But that's just me - and my opinion on the matter.
Others do things differently and may have other opinions, that's their prerogative.
I'm just not a fan of this "must use mobile authenticator or wait 15 days to sell / trade stuff".
So my personal solution will probably be that one of the 3 accounts in the household will be attached to the Mobile Authenticator for Market Selling -purposes, stuff can be then traded to that account with a one day wait. *Shrug.*
The extra oddity -- this really bamfoozels me, if someone can explain this I would greatly appreciate it! -- is that Steam Support has already stopped returning items that have been traded out with what seems to be "approval of the account (holder)", yes?
So if this is already the case, regardless of security settings & optin in or out of the mobile authenticator, why is the option of not wanting the mobile authenticator penalised so heavily?
Where is the option to opt out of this penalizement?
(Other than adopting the Mobile Authenticator?)
I suppose I willingly, knowingly, in full mental and physical health, want to reduce the parenting I Steam is giving me? :P Taking care of me & my stuff too much now, Steam! Not appreciated!
Wanting good, wanting to protect us weak mortals, that's fine!
But to enforce it... (in such a way) ...is much less cool.
That opt-out would need at least the same time period to apply though, otherwise the implemented security would be compromised, as an attacker could just downgrade your security.
(I'd take it. Even if it was a 30 day waiting period!)
It is similar to seatbelt laws. Obviously, virtually everyone knows that it is safer to use one than not, but not all people are willing to deal with the hassle or discomfort of using one. Even though not using a seatbelt pretty much only affects the non-wearer, it is important enough that those in power decided to issue penalties (traffic stops, fines, court dates) for those who choose to not participate in the practice.
Not sure if this is the answer you seek, but here's one negative side to account thefts despite items no longer being returned,
I have more than 100 games and I've bought and sold on the market hundreds of times.
What is my reward for this loyalty and money spent?
Valve tells me I need to buy a smartphone and pay a monthly fee to a third party, in order to keep using all their features.
Thanks Valve - You suck
Also - let's not have this "you can still use the market" bs. People without the mobile app have effectively been cut out of the market - AND EVERYONE KNOWS THAT.
But you know, that you have to log into steam on the smartphone with your login data? If they get their hands on this device, they have it all.
Does it save your credentials (which would be an insane security f-up) or just a token that's only valid for Mobile Auth login or do you have to manually type in the login info every time?
Also, the device that has the authenticator won't ask for your authenticator code.
When I was using iPhone, I'd use Steam Family View PIN, since you can restrict community access behind a PIN with that. That's not as doable on Android, for which is why I use AppLocker instead.
Ah, I assumed it was just 2FA.
I didn't know it had other uses and hence doesn't really qualify as such in a stricter sense.
Honestly, I don't even see the use cases now, as the pictures shown on the google play store are things the website itself could have done (like chat, community, store). And even if a standalone application would be needed for that for any reason, that app should have been a separate application so that the mobile auth aspect could get a token based login that's not valid for anything else.
Thanks for warning me.