background check.
If I privately sold a firearm and had to have a background check ran by a dealer, the same procedure would happen.
Privacy and Security of NICS Information
The privacy and security of the information in the NICS is of great importance. In October 1998, the Attorney General published regulations on the privacy and security of NICS information, including the proper and official use of this information. These regulations are available on the NICS Web site. Data stored in the NICS is documented federal data and access to that information is restricted to agencies authorized by the FBI. Extensive measures are taken to ensure the security and integrity of the system information and agency use.
The NICS is not to be used to establish a federal firearm registry; information about an inquiry resulting in an allowed transfer is destroyed in accordance with NICS regulations. Current destruction of NICS records became effective when a final rule was published by the Department of Justice in The Federal Register, outlining the following changes. Per Title 28, Code of Federal Regulations, Part 25.9(b)(1), (2), and (3), the NICS Section must destroy all identifying information on allowed transactions prior to the start of the next NICS operational day. If a potential purchaser is delayed or denied a firearm and successfully appeals the decision, the NICS Section cannot retain a record of the overturned appeal. If the record is not able to be updated, the purchaser continues to be denied or delayed, and if that individual appeals the decision, the documentation must be resubmitted on every subsequent purchase. For this reason, the Voluntary Appeal File (VAF) has been established. This process permits applicants to request that the NICS maintain information about themselves in the VAF to prevent future denials or extended delays of a firearm transfer. (See VAF Section below.)
emphasis added http://www.fbi.gov/hq/cjisd/nics/nicsfact.htm But I do see your point. I have known people who would only buy used firearms as there was no paperwork involving the government. They felt the government would have no idea that they owned firearms. This is possible but unlikely in an age where the government is extensively involved in data mining. Chances are that the government already knows who owns firearms. I personally don't really worry about the government finding out that I own weapons. Since I have a concealed weapons permit, it's obvious.
GAO: Fed Data Mining ExtensiveKim Zetter Email 05.27.04
Just as the General Accounting Office released a report Thursday surveying the extensive amount of data mining conducted by federal agencies on individuals, a government watchdog group released its own report suggesting three steps the government could take to limit the invasiveness of such activity.
Data mining is the practice of using database software to compile and sift through large amounts of data, often of a personal nature, for the purpose of producing profiles of people, analyzing activity and deducing patterns in the information.
The GAO investigation (PDF), which covered only unclassified data mining, found that the practice was pervasive throughout the government and identified 52 agencies that had 199 data mining projects active or in the planning stages. Of those, the GAO found that 122 used Americans' personal information.
***snip***
The report also uncovered 54 projects with data supplied by private companies, such as credit reporting agencies and credit card issuers. Of those 54 projects, 36 involved personally identifiable information such as names, Social Security numbers and driver's license numbers, raising concerns about the unregulated nature of government data mining.
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http://www.wired.com/politics/security/news/2004/05/63623#ixzz0tuhQHBUx