Over the next few days Microsoft will begin rolling out an overhaul to accounts, which will include a crucial security upgrade: Two-step verification. This will go a long way to preventing hackers from getting into your account and causing all sorts of damage. So if you have a Microsoft Account, you should definitely set the feature up at https://account.live.com/proofs/Manage.
The new Microsoft two-step has the same code verification process. You can also set up old-fashioned security questions.
The system helps protect your account from hackers by requiring two pieces of information before you can access it — usually your password and something else. Both Google and Facebook use a system whereby after you correctly enter your password, the system sends a code to your phone. That way somebody needs both your password and your phone to get into your goods.
Previously, Microsoft had two-step verification for credit card activities at commerce.microsoft.com and xbox.com, as well as for accessing your SkyDrive from an unknown computer. Those steps are required for your safety. The new optional service will help secure access to all products connected to your account across web, mobile, and desktop platforms.