Beware of Cyanide Gas
Hopefully everyone knows that when you delete a file on a computer, it's barely gone at all. The directory entry for the data may be gone, but the blocks themselves are still on disk, and there are a variety of tools you can use to read them.
Overwriting the data on disk can help against casual intruders, but it won't stop people who are serious about recovering secret data - like the NSA, for instance. There is a tool called an MFM (Magnetic Force Microscope) that lets you read the magnetic forces directly off the surface of a disk platter. Disk heads don't always track to exactly the same location, so you can often see a shadow of old bits just to the side of the new track. It some cases you can read multiple versions going back in time. Also, disk drives can automatically remap bad blocks. In that case, you'll overwrite the replacement block, but the original block remains - perhaps flawed but still mostly readable.
You might think that shooting a bullet through a disk - or hammering it to bits - would make it unreadable, but the NSA can apparently read useful data off of a platter that has been cut into chunks that are only 1/25th of an inch. You have to hammer on a disk for a long time to get it into chunks that small.
Using encryption and throwing away the keys works pretty well. The weak links there are the strength of the encryption algorithm and making sure that there are no extra copies of the keys.
Degaussing devices can also work well, but it isn't enough to use a random big magnet. That leaves plenty of data for the MFM to read. To really delete the data you have go through a specific sequence of magnetic field forces. The details depend on what kind of magnetic media you are using.
Another technique is to grind off the surface of that platter. Apparently that works pretty well, but you have to be careful because the chemicals are carcinogenic. Also, if the grinder isn't maintained, chunks may start to come off that are bigger than 1/25th of an inch.
Or you can incinerate the drive, which also works well, but beware of the cyanide gas that is released.
Last Wednesday I spent the day in D.C. visiting Senators and Representatives (or more often their staffers), to talk about data regulation broadly, and data privacy specifically -- how to protect credit card numbers and other personal information. There are at least half a dozen consumer data privacy bills in committee right now, so the timing was good. Afterwards, I had a chance to talk with some members of the media (see 


