The Public Services Card is in breach of several aspects of data protection law, according to the state's watchdog.
The Data Protection Commissioner is demanding immediate action to fix the problem.
The commissioner said it has no issue with the Department of Social Protection processing personal data on the card so that it can be used to claim social welfare.
However, it does object strongly to the information being shared with other state agencies.
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It said this is in breach of data protection laws and must stop within 21 days.
