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There can be situations where you have many games installed, and they require updates, and depending on your update settings, the games can be automatically updating.
In short, Steam is probably doing what you have it set to do.
EDIT..There can also be security software conflict issues possibly, such as misconfigured antivirus programs quarantining .exe files for games, just as an example. Those files have to be reaquired, of course, which can be using data.
I remember habitual (a forum regular) helping with this very same issue in the past.
We are aware of the manual launch and automatic update. What's suprising is that after 10 years of using steam, this has never been an issue, and no where near 700 GB or 1 TB in a single 24 hour period.
I didn't think about the mods. Is there a way to see a history of specific downloads to see if a particular game or mod is doing this?
From what you have said, if I am understanding the situation correctly, you have Steam running all the time, on more than one account even, and you or both of you always logged in.
If so, I highly suggest against that type of use. Hope you understand. Thanks.
On a different perspective, it is a nice feature to have the background updating so that when his buddies hop on different games each night, the games are ready to play without waiting to update.
Sounds to me as if Steam is just doing what you have it set to do , as I said above. Depending on the example that the good Hodman posted above, among other possibilities.
http://steamcommunity.com/discussions/forum/1/154643795213320330/
I'm not sure if there's a way to check download history but you can see what's in queue by going to your library, on top of your game list click "games" then downloads.
767 gb would at least require fulltime 8mbyte/s
Definately going to do that now, but I don't know how to handle this month's internet bill...