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Do not trade until your account is secured.
Take the following steps to secure your account:
1. Scan for malware. https://www.malwarebytes.com/
2. Check that the email and phone number on the Steam account are still yours.
3. Deauthorize all other devices. https://store.steampowered.com/twofactor/manage
4. Change passwords from a clean computer.
5. Generate new backup codes for your Mobile App. https://store.steampowered.com/twofactor/manage
6. Revoke the API key (there should be no key). https://steamcommunity.com/dev/apikey
Steam does not return inventory items or wallet funds: https://support.steampowered.com/kb_article.php?ref=3415-WAFH-6433#noreturn [/quote]
If you no longer have access to your account, read this:
https://steamcommunity.com/sharedfiles/filedetails/?id=1126288560
At some point in the past, you have logged into a malicious website with your Steam login. This site has placed a bot into your account, which was there, sitting, waiting, for you to create a very valuable trade.
Then it canceled the trade, made an account owned by the thief take the name and avatar of your friend, and sent the trade to this one.
This is the trade, you confirmed on your phone. You could have spotted it by the warnings, that the person has recently changed their name and is not a friend of yours.
The steps listed up there are a way to clean out the bot from your account. Do ALL of them.
In the future, do not do Steam logins on other websites. Instead do a browser login on the website of Steam (store.steampowered - bookmark it to avoid copycats). Every website, that needs a Steam login, will recognise this and allow you to confirm your account.
If it still asks for your name and password, it is not a real Steam login.
Criminals never use their own profiles (why would they pay 5 Dollar to unlock it, when they can get hundreds for free by stealing them). Those accounts are used for a couple of days and then discarded.
However, if the original owner ever gets it back, your link in this thread will keep haunting them.
And about the "report him for me" part - reports are checked manually, so third-party reports are useless and will be discarded. Mass-reports on a profile may even lead to legitimate reports being drowned in the mass.
You may want to keep this piece in mind as well, if anyone ever claims to have "accidentially reported" you (another very popular scam scheme).
So yeah, please remove the link, before a forum mod has to do it.