Is it really possible to keep personal data private? Between the personal info of 26.5 million veterans being stolen, Gary McKinnen hacking into US Gov computers, and of course, the ongoing NSA wiretapping stuff, it really makes you wonder.

Information Week now has an article on data grabbing. Did you know that the FBI sends 30,000 national security letters - special subpoenas that don’t require a judge’s signature that allow the FBI to request bank, insurance, phone, ISP and credit report records (thankfully, medical records are not included) - each year? And unlike subpoenas, companies who receive a national security letter can’t disclose that they’ve received one?

Subpoenas can at least be fought in court, as Google did, but now the Justice Department is asking Google, AOL, Verizon and other internet bigwigs to keep their subscriber information and customer data for at least two years - you know, in case the government needs it for a criminal investigation.

What might government agencies do with all the business and Internet data they’re collecting? Some skeptics worry about a single massive database where all kinds of information gets crunched together, providing a complete picture of Joe Citizen. That seems a remote possibility, though researchers at the Defense Advanced Research Projects Agency did work on a system several years ago that would have mined data in that way to identify terrorists. That program, dubbed Total Information Awareness, was scrapped more than two years ago under public pressure.

A different but related concern is that data collected for one purpose could get used for another. USA Today last week reported that the FBI plans to use its database of DNA evidence, collected from convicted criminals and some others upon arrest, to help identify thousands of dead people whose identities aren’t known.

There’s also the concern that once the feds gets their hands on data, they can’t be trusted to secure it. Look no further than last month’s news of a stolen laptop and external hard drive containing data on 26.5 million military veterans and family members. The Veterans Affairs Department has been fingered for its lack of security before, but it’s not the only agency with low marks. Security becomes even more of an issue as more data accumulates and gets retained longer.

Encryption is one solution, but encrypted data can’t be searched easily and is thus less useful to the government. Nothing, it seems, about data sharing between businesses and government is destined to be easy.