The Windows Live team announced today that the upcoming Windows Live Hotmail email service will be included with several security enhancements.

“Security remains the number one concern of people who use email and a top priority for all Microsoft development efforts, products, and services – Hotmail included.” said John Scarrow, the Partner Group Program Manager of Windows Live.

Here are a few particular security enhancements they have made:

Account recovery

The new security platform elements that built up around Hotmail now enable you to use your cell phone or other items as proof of account ownership. For example, if you lose your password, or, worse, if your account gets compromised, the system can now send you an account recapture code via SMS to regain access to your account.

Single-use codes

This new security feature is designed to further protect you when you sign in from a public computer, such as those found in internet cafés, airports, and coffee shops.

Full-session SSL

In addition to providing SSL encryption at login for all accounts, the new Hotmail will soon support the option to maintain SSL encryption between you and our servers during your entire Hotmail session.

Trusted senders

Hotmail will help you to visually identify trusted senders in your inbox, particularly banks and other institutions commonly used for phishing scams. We put safety logos next to only those senders that we recognize as legitimate so that you can more easily spot malicious imitators.

For more details about the upcoming Hotmail service can be found in a post in the Windows Team Blog.