Yahoo has confirmed what most of us already know, that the password system is antiquated and does not protect you from anything.
Basically, the system is like two-step authentication, although without the password portion of it, so in essence it seems just as secure as normal two-step but with the added luxury of not needing to remember a password.
If you live in the U.S., you can activate the new on-demand system now through the account info page and then "security."
Source:
BGR












