Two-step authentication is a way to help secure certain types of account so that, even if someone does steal (or guess!) your password, they STILL can't get in.
Two-step authentication (also called "two-factor verification") adds a second, additional layer of security so that, when you log in to an account (an email account, bank account, etc.), you prove TWICE that you are really you.
Here's a good article on it:
http://gigaom.com/2013/10/07/what-is-two-step-authentication/
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