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We at Jammer-Store company have made a little research on the topic and found out that the problem with Google storage for passwords is in the fact that all your Wi-Fi passwords are stored on their servers in an unencrypted way. So literary anyone who will be able to hijack your Google account will be able to use them. But that’s not the only problem. Alongside with the passwords, there is a base of all wireless network SSID names, to which you’ve ever connected.
Google gathers your personal information and in that case, users mostly don’t know ho their data is being processed. Every time your phone connects the web it creates a backup copy of important data and sends it to Google. That function is turned on by default and a great deal of users don’t even know about that fact. Many people fear that spying organizations, like NSA may use that information, especially while the scandal with Snowden is still in the air.
The most simple way how to solve that problem is to avoid Wi-Fi at all, because wireless network are really vulnerable and hackers may even use those against you. But in most cases it is impossible, so make sure to turn the backup function off and use only know and trusted Wi-Fi hotspots. Also, a Wi-Fi signal jammer will be handy to make sure that your smartphone won’t connect anything without your permission.
Thanks for your question, I hope, I’ve managed to help!