The Internet has been riddled with stories over the last couple of days debating this release from Yahoo concerning authentication. Sophos has done a good job providing some perspective. I am skeptical of the value of the change. I will grant that “something you have” is the stronger of the two factors traditionally associated with 2-factor auth, but at the end of the day, it is still only one factor. Time will tell as to the effectiveness of this approach.
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