You probably read about it in Cryptonomicon (I know that's where I read about it), but I don't know if Stephenson made it up or not.
As to practically It seems quite unfeasible. First of all since magnetic forces fall off according to the inverse square law, you're going to need a seriously large magnet to for it work at say 1 meters distance or so. You're basically going to have seriously retrofit your entire house, and it's going to be very hard to hide. Secondly and more importantly even the most powerful commercial hard drive degaussers require that the drive be in contact with the magnet for up to 10 seconds to guarantee that all the data is erased, so someone just walking through a door isn't going to be in the field for anywhere near enough time.
Unless you can get your hands on a powerful magnetic monopole, the field falls off with the inverse CUBE of distance. (Note: noone has so far managed to get their hands on a magnetic monopole, powerful or otherwise.)
As to practically It seems quite unfeasible. First of all since magnetic forces fall off according to the inverse square law, you're going to need a seriously large magnet to for it work at say 1 meters distance or so. You're basically going to have seriously retrofit your entire house, and it's going to be very hard to hide. Secondly and more importantly even the most powerful commercial hard drive degaussers require that the drive be in contact with the magnet for up to 10 seconds to guarantee that all the data is erased, so someone just walking through a door isn't going to be in the field for anywhere near enough time.