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how much money did you spend on the account?
And ultimately; is it worth suing over?
If not. Better just bail and cut your losses.
Valve is not known to budge on these matters and it seems you're in a situation where push would have to come to shove to resolve things.
That said: I agree with you that their handling of disputed accounts is extremely poor.
shady key sellers are not proof
next time take better care
This is why you should always print your receipts.
That said; you may have one other bit of information you can present to Valve.
Did you ever register any boxed purchases on Steam via a product key?
If you can snap a pic of the physical box and the card with the product key, that might convince them you're legit.
They're kicked out of their old account by the hacker and need to claim ownership.
So they can't recover the information from the account.
relies on people not falling for scams above all else
when you literally give someone your 2 factor auth info what protection do you think works?
If the first email was different, that is a good additional proof. As well as knowing the phone number too.
-"The app relies on geolocation which is, in fact, good because I have blocked some people attempting logins w/o even giving out info to phishers."-
That sounds like a serious problem with a device you use,
or you didnt see the phishing.
This wouldn’t be an issue if they just used reputable sites which sell keys - those sites actually keep a record of your activated key.