Web based CRM provider has the capabilities to encrypt data and ensure data security through prevention of hack attacks of any kind. The customer information and all the data contained in the CRM application is the company's most critical asset as it plays an important role for the day to day business activities of the company. This data is often the most vulnerable to security breaches and disruptions.
No customer want their data to be shared to third paties without their consent. They always want an assurance of having the data stored in Web based CRM or online CRM to be secure.
Hosted CRM providers make use of data security technologies and policies which could be quite expensive and powerful tools for safeguarding its online information. The security technologies could include data encryption, user authentication, storm and attack-hardened datacenters etc.
Most of the times, the data security breaches originate from inside the business. Hence, before questioning the providers of data security you can have clear look at your own organization's security arrangements.
It is always better to analyse and investigate the security practices of the web based CRM application provider that you plan to use. But its even to better to look into your own business environment to spot any potential weak points on your end.