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I just received this email from Apple Support:
Apple Suppoprt said:Dear ,
Thank you for using two-step verification to protect your Apple ID.
This email provides information about recent updates to your service.
Two-step verification now protects iCloud
Starting today, in addition to protecting your Apple ID account information, two-step
verification also protects all of the data you store and keep up to date with iCloud.
For more information, read the Two-Step Verification FAQ.
Sign in securely with app-specific passwords
If you use iCloud with any third party apps such as Microsoft Outlook,
Mozilla Thunderbird, or BusyCal, you can now generate app-specific
passwords that allow you to sign in securely even if the app you are
using does not support two-step verification.
To generate an app-specific password:
• Sign in to My*Apple*ID (https://appleid.apple.com)
• Go to Password & Security
• Click Generate App-Specific Password
App-Specific passwords will be required starting on October 1, 2014.
For complete instructions and answers to common questions, read Using
App‑Specific Passwords. If you need additional help, visit Apple*Support.