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Yes, Ground Fault Circuit Interrupters were specifically designed to provide protection against harmful electrical shocks on circuits without the third wire ground. They cause a circuit breaker to pop if the magnitude of the current is not the same in both the hot and neutral wires (indicating current leakage to something else like a person or water).

However they also happen to make grounded three wire circuits even safer than they already are.

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Q: Will a GFCI work properly using a 2 wire plug?
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