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The simple reason is that personal data stored badly can easily lead to it falling into the wrong hands, and identity theft taking place. There have been so many examples of large companies having their data security breached and millions of customer records stolen (including very personal and...

I’d agree with this. It’s all about the intended use of the data, and whether there’s a valid business reason for doing so. In the case of the OP, I’d say it’s a reasonable requirement during the job application process/probationary period for this information to be stored. Once that period has...