I'm using torsocks to connect my CLI wallet to a remote node (geo.node.moneroworld.com:18089). I don't need a high level of anonymity, but I would like to understand what information is at risk. For example, can a malicious hacker sniff my wallet password?
Your wallet password is local to the wallet. It's not sent to the daemon, which never gets hold of that, nor the wallet keys. Using Tor, information is encrypted between your own tor daemon (though if you're going to use a third party Monero daemon, you might be using a third party Tor daemon, which is even worse) and the destination hidden service, so any snooper in the middle is not going to see anything unencrypted.