It depends... How are you accessing this database? Who works on / maintains it? Going in is definitely a far bigger concern. However, if you wanted to sanitize it coming out of a database you need to know what you are sanitizing for. If you want to sanitize web traffic against XSS you'd probably want to remove all url's not on a whitelist, perhaps script tags and a few other things as well. Are you sanitizing data going into a C/C++ program? Then you probably want to make sure you're protecting yourself against buffer overflow issues as this is a legitimate avenue of attack.
I'm drawing some assumptions about your design here but I'm going to assume you're just working on the model aspect of an MVC application using PHP. PHP, in this case, has been most vulnerable to SQL Injection attacks on the backend, and XSS (cross site scripting) attacks on the front end. (NOTE: This isn't a PHP problem exclusively, this is a problem in all programming and different languages provide different solutions to different problems. Remember - you need to know what you're sanitizing for what reason. There is no one size fits all.
So really, unless you are sanitizing against something universal in all the code this model will sanitize for, you probably don't want to sanitize here. XSS would be a bigger concern to you now than sql injection... the way out is too late to stop an injection attack.
To take some liberty just to get the juices flowing - From a security standpoint, given your code seems to revolve around authentication, I would be much more immediately concerned around how you are storing and processing your credentialing data. A few things should definitely be doing:
- Running the password through a secure, 1-way hash BEFORE storage (such as BCrypt).
- Salting these hashes (with a different salt for EACH user) before storing them in the database to protect your user's data from things such as rainbow table attacks.
- Using TLS for all communications.
- Establishing and maintaining a secure session (track user-login without exposing password data with every single request sent, amongst other things).