This is not the default, but MySQL supports ssl.
https://dev.mysql.com/doc/refman/5.5/en/using-encrypted-connections.html
Probably yes, your credentials are scattered in plain text and can be easily intercepted using a sniffer.
If you cannot force your provider to configure mysql ssl, perhaps you can first connect to the network where the mysql server is located, and then connect to 3306? Guess it depends on what options your provider provides you.
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