Security Issue

As I travel frequently and use a VPN to access my UK based subscriptions as I'm sometimes holed up in a hotel for weeks on end.

Up until now I've used a certain supplier and have had no issues but recently I had problems whilst in China and had to re-install the software.

As part of this and during the installation the software requested my computer password (Apple ID) and I decided not to comply for what I imagine what are pretty obvious reasons.

Whilst I understand that 3rd party software like this can be dodgy - was I smart in doing so, as I imagine that would allow them to easily access a lot of my information and other accounts stored in my computer quite easily?