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Help Security after unlocking and root

What is the best way to protect the data on my phone in case my phone is lost?

The phone is unlocked, running CWM v5.8.0.2 and 8/7/12 toro BB 4.1.1. The pin lock screen has an option to reboot into recovery. Can someone perform a backup and see my data?

USB debugging is disabled.

Do I need to lock the bootloader?

If I encrypt the phone, with this prevent updating the rom?
 
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