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The easiest way to be sure is to log into the Steam website first, then use the "log in through Steam". That way, the "login through Steam" will merely ask you whether you want to log into that site using your current Steam account -- you never have to enter your Steam credentials. So if a website fakes the "login through Steam" and asks for your credentials, you know it's trying to phish you.
3rd party websites have "public" access -- i.e. they can only see stuff that everyone on the internet can see by clicking through your profile. They cannot see private stuff or change anything -- unless they asked for permission to redeem keys, in which case they can add games to your account. If that's the case, then Steam will ask you for this permission during the login procedure.
I don't see how steam would like to be affilieated with a "illegal" website.
Not really.
It's free to access the Steam API, you and I could create a site that adds the 'sign in through Steam' button that displays details about users and their accounts, etc. It's all free public information
If a site is detrimental to Steam, they may block access for that user/site to the API, but if they don't know about the site... they can't do anything!
Steam doesn't give out more information that your public stuff. And everyone can use that mechanism, even you could make a website that can "login through Steam".
Although I haven't tried doing it myself just yet. Some of their web-stuff requires things like an "API-key", which may or may not involve some form of registration that may or may not be denied.
Either way, to my knowledge, Steam uses a standard protocol called '"OpenID" which is also used by other websites to provide "login through..." services for 3rd party sites.
Technically, the "login through Steam" redirects a website to Steam, and returns a user-ID unique to Steam (probably the long number for your account) along with the information that the user is indeed THAT user. That's all that the 3rd party site ever sees -- no passwords or private information.
During the "login through..." procedure, Steam will ask you whether you want to allow that site to register keys, if the site asks for that capability. If they don't ask for it they can't do it.
Sites can never access your inventory other than reading it if it's set to public.
Now I regret it. ((cancer))