Using the FailedLogins attribute to force captcha upon users after N failed logins.

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Building a functionality that should force users to fill in a captcha after some number of failed logins. I was planning to use the FailedLogins attribute for this purpose but it does not seem to actually register failed logins. Does anyone have experience using this attribute?
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I have played around with this attribute as well, and I needed to deploy in the cloud to get this to work. I do not recall if I had to deploy in a production environment or an acceptance environment, but a local deployment will not use this attribute.

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