I'm not a big fan of people making up statistics to drive home a point but I'll bite.
First off, Raffles, you run advertorials for AwardWallet on your blog. So you have a conflict of interest. As such, I read your post on the topic with a good amount of skepticism and I find it particularly worrying your "argument" is based on statistics you've all made up.
Originally Posted by
Raffles
0.001% chance - AW steals your points
I don't consider that a thread, either.
25%+ chance (happened to me) - someone else hacks one of your accounts and AW helps you spot it immediately and get the points back
There are other services well-suited to that task. Importantly, they don't need your password, just your email address (or user name).
I think the important issue is if AW gets hacked, you can expect little sympathy from the airlines/hotel programs that have been compromised as a consequence. For a number of reasons, I expect program administrators to be more sympathetic if multiple of their accounts have been hacked directly.