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That is only the case if you need the authenticator to access everything or just the game. I'm hoping it's everything.
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This is in fact the case, I was able to get one at Fan Faire and it's for all SOE logins.
Protozoan,
You fail at understanding security. Two-factor authentication is an industry proven standard that millions of businesses across the world use to secure their infrastructure. The first factor is "Something you know" which is the basic password system that has been around for many many years.
The second factor is "Something you have" which is a keyfob that generates random codes every 30 seconds (depending on the fob they all work differently) but the majority I have seen and used regen codes about every 30 seconds.
Now obviously nothing is 100% any number of factors come into play. But it is a MASSIVE increase on security on your account because nobody has your keyfob or knows the random key that it is generating at any given time.
Is it a pain? Maybe, but no worse than having your identity stolen. I'd rather use the keyfob than the alternative.
Can the battery die? Sure, but I'd imagine they last quite a long time they don't use much horsepower and they have a constant drain.