I haven't explored this personally, but it generally depends on the application interface. So it is possible to read "password protected" entries in the raw data file from a PC HotSync. However, newer versions of PalmOS are rumoured to enforce some aspects of data privacy.
If you want to store stuff like a credit card number, try [link|http://www.normsoft.com/cryptinfo/index.shtml|CryptInfo] for which I can thank one Karsten Self for. :-)
Wade.