The registered phone needs to be within the vicinity of your computer (secure communication via Bluetooth), which is more secure than just using a login prompt.
By enabling iPhone users to defend against phishing attacks using their phone's security key, Google effectively brought the strongest phishing-resistant two-factor authentication (2FA) to Google accounts on the iOS platform.
In a step to improve account security, Google has updated its iOS app so that iPhones can be used as security keys for two-factor authentication. It adds an additional "what you have" layer to the standard "who you are" (username), and "what you know" (password) level of security.
After installing the update, users are asked to select a Google account to set up their phone's built-in security key. This feature could also be quite useful for those who live in countries where security keys are not readily available for purchase.
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The device through which they are signing into their account has to have the latest version of a compatible browser (e.g., Chrome), the latest version of a compatible OS (e.g., Chrome OS, Mac OS, or Windows 10), and Bluetooth enabled.
While they initially assumed it was a bug, a Google spokesperson has now confirmed that the lack of confirmation notifications for updated apps are a deliberate change by the company's engineers, likely aimed at reducing the notification spam from the Play Store.