According to Kaspersky publicity material, passwords stored in the vaultare encrypted and my data is not known to Kaspersky. So how are Kaspersky able to produce a report telling me how many times my passwords have been hacked according to “have I been pwned”?

Hello @AndyB !

 

For additional security, Kaspersky Password Manager can check whether your passwords have been hacked or leaked.

The application uses Secure Hash Algorithm 256 (SHA-256) to check for compromised passwords. The application generates SHA-256 message digests from each password in your vault and compares them with SHA-256 messages from a database of compromised passwords. If the SHA-256 messages match, the application warns you that your password is compromised and you better change it.

By default, the check for compromised passwords is enabled.

 

https://support.kaspersky.com/KPM/Win9.2/en-US/138725.htm