Can you please explain your developer that they are not using the icann recommended method of transfer approval. They have misunderstood that method.
If you require users to login to their name.com to approve the transfer (you do this at the moment) then there is no need to insert a random key to the transfer approval link. However this is not the recommended method.
If you are using a random key in your transfer approval link (you do this at the moment), then there is no need to login because the whole idea of the random key is that it is connected to the domain that nobody can ever know.
In other words, once this link is clicked it should not ask for login:
name.com/transfers_in/accept.php?key=f27f0203c8e2dc54682263017ceae9e2
The only reason that you have such a random number here is that it will not ask for login. Of course it should not login you to your account either. It should be just an isolated landing page. Transfer a domain to namecheap to see how they do this correctly.
Here is what is wrong with your system:
1) You are the buyer. Somebody sells you a high value domain at sedo and notices that you want to transfer to name.com
2) He sends a fake transfer approval email with a fake link
3) You click the link and you land on a page like this:
http://img810.imageshack.us/img810/421/afterclick.gif
This is the actual page that you land at the moment. However the page you open will be a copy of this.
4) You enter your login details and you see a message that says approved.
5) Now you have already give your account details to a stranger
Here is what should happen:
1) You generate a random key like this:
name.com/transfers_in/accept.php?key=f27f0203c8e2dc54682263017ceae9e2
The link already knows what domain this is and what account it is in. You don't ask for login.
2) Person clicks the link.
3) You approve the transfer.
This is how namecheap.com is doing it.
The reason why you create such random keys is because this way you can carry information such as what domain this is and what account it is in, without somebody else being able to reproduce the information. For instance if your link looked like this:
name.com/transfers_in/accept.php?domain=paul.com
you would have to ask for login because how do you know the right person is clicking the link? There is no way. However if you hide paul.com behind f27f0203c8e2dc54682263017ceae9e2 and somebody clicks that link, you automatically know that only the right person could have clicked that link. Nobody else can know that combination. It was created randomly and inserted into the email.