We could even talk about two-factor authentication in my opinion. The idea is, that whenever you logon from an untrusted PC, you will be asked to use a second factor (or step). In my case, which I show below, I use the Authenticator app on my phone, which is similar to an RSA SecureID.
How to set it up? Fairly easy:
Logon to your Microsoft Account (formerly LiveID) on https://account.live.com .
There you have all your account settings. Go to your Security Info:
And choose Set up two-step verification, which will guide you through the wizard:
Once you are done, get back to your Security Info and choose Authenticator App:
In the meantime, download the Authenticator App to your phone as in the next screen you can pair them:
Done! Enjoy the additional layer of security J