Is the database and data secure and encrypted?

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The data stored in the WebWatchBot database is not encypted by default.

WebWatchBot does have some security features that can be enabled (http://www.exclamationsoft.com/webwatchbot/help/website/SecuringWebWatchBot.html); however, in version 6.0 and moving forward, this built-in functionality will be removed.

Instead, we recommend using SQL Server 2008 and the built-in security and encryption that it offers, as well as employing techniques to secure your Windows server, including the web server.

Reference: http://www.sqlservercentral.com/articles/Transparent+Data+Encryption/66334/