When activated, the feature will prompt you to perform a biometric scan (Face ID or Touch ID) when you're away from familiar locations, like home or work. In those situations, it won't allow you (or an iPhone snatcher) to use your passcode as a backup method. It also incorporates time delays for some security-related features.
The tool may have been inspired by a Wall Street Journal report from early 2023 about an increasingly common practice of thieves spying on users while entering their passcode - right before snatching the phone and taking off.
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