Yes. Whatever the manual says, it's bullshit and it doesn't help you in any way to authenticate a client and the data they send. It may help against man in the middle attacks and people sniffing on the wire, although, since the manual makes no effort in telling you how the encryption works and what is used to authenticate and authorise clients, I wouldn't exactly trust the system.

Given Gamestudios track record with encryption, which basically boils down to security-through-obscurity and no one actually caring enough to break it since it's not worth the effort... Well, I don't know, use with care and don't trust a client. Ever.