I don't think we can assume more information increases the likelihood of false accusations. It certainly can for any given situation, but it can certainly greatly reduce the risk by identifying the real perpetrator.

If I were on trial when I was innocent, I'd really appreciate having this information available.

Though if there was empirical data to suggest that it was more risky, I could be convinced.

Sure they do. Especially when compared to what is accessible to civil plaintiffs.

Your searches aren't even private since you let google look at them.

Well if the government did murder 100 million people it would certainly use Google to assist.

Nazi's used IBM, VW, Bayer, etc.

Letting them get search data about fraud won't make that any more or less likely though.