Staff at the Department for Work and Pensions (DWP) have been transporting data in the same package as the passwords, according to reports.
A blog, Dizzy Thinks, says that an email was sent round to employees in the department advising them against the practice of sending password-protected disks in the same package as the passwords, reports ComputerWorld.
The email said: "However, once the data and the separate password are received, staff are then forwarding the data and password on together."
It added that the practice "defeats the purpose of the security measure entirely".
New security instructions issued to all civil servants last December said that passwords should always be sent separately to the data, whether being sent electronically or by courier.
The recent information security breaches survey has shown that data theft against British firms and the government is increasing, with many firms still failing to encrypt data.
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