Also, when you have root access to the environment where the data is encrypted in transit you can intercept one of the handshakess in the front or back-end to decrypt the data in transit. The idea is to impersonate both sides of the connection, then you can write your own certificates and create your own handshake. For example, maybe there is a web server and a caching server. The caching server sends data to a user outside the network with one certificate, and the web server sends data to the caching server with another certificate. If you perform a man-in-the-middle on the web server -> caching server, then you might be able to rewrite the encryption handshake, depending on the security configuration of the back-end. None of this would throw an error on the users browser.
This is also why I personally picked 1Password (and have used them for ~10 years) out of all options, because their original OPVault format (which I synced via Dropbox as a plain file host) and current SaaS format had these safeguards.
Here's the whitepaper explaining this: https://1passwordstatic.com/files/security/1password-white-p...
I do think that it would be technically possible to, eventually, abuse this system. The problem is, these "guarantees" create a misunderstood sense of security. They want you to believe this is "more" secure. But "more secure" than what? Competing cloud platforms, maybe.
What if someone had access to 1Password's "vaults". They would only need to phish the user for two pieces of data; the 1Password password and the account key. Then, without ever having hacked your network, they gain all your passwords.
So anyone with a back door into 1Password gets a trove of accounts that they can phish.
Your key or password aren’t even sent to 1Password, ever. Logging in is done by computing and sending a cryptographic proof, and both sides validate each other through those cryptographic challenges.
Again, a back door into 1P SaaS in this case is equivalent to a back door into any cloud storage service, e.g.: Google Drive, Dropbox, etc.
> They would only need to phish the user for two pieces of data; the 1Password password and the account key
I think there’s a misunderstanding here. You have an email, an alphanumeric account key and a password. There are 3 user details, effectively. Then, you can add 2FA, either via TOTP or FIDO2/Passkey. So a total of 3 factors: something you have (account key), something you know (password) and something else you have (a 2FA device).
I'm not saying that this is what happened here, just pointing out that there are other risks here which cannot be mitigated by strong encryption.