I learned a couple of important tidbits today about it: 1) Verification does not follow when phone is replaced, 2) You need to type recovery key, not cut and paste it.
Thanks to Jeff Kibuule for tweeting about these issues https://twitter.com/jeffkibuule/status/333765576226914305
That is where I learned about these problems.
I agree with Jeff that Apple Store employees need to be aware of this issue when they suggest swapping phones for customers.
I hope this saves people from some headaches!
Also really suggest people that use this two step verification have more than one Trusted Device, and more than one hard copy of the Recovery Key securely stored, because even if you are trying to recover lost password, you will still need a minimum of two of the 3 following:
- Apple ID password
- Trusted Device [ SMS capable phone OR iOS device with Find My iPhone enabled]
- Recovery Key [14 digit Recovery Key Apple provides, they say print and keep in a safe place]
- Apple ID: Frequently asked questions about two-step verification for Apple ID: http://support.apple.com/kb/HT5570
- Apple ID: Can't sign in with two-step verification: http://support.apple.com/kb/HT5577
- [Trusted Devices] Apple ID: About SMS and two-step verification: http://support.apple.com/kb/HT5593
- Turning off two-step verification for your Apple ID: http://support.apple.com/kb/HT5631
- Jeff Kibuule's Tweet about these issues https://twitter.com/jeffkibuule/status/333765576226914305