"It is unfortunate at any time if there's fraud associated with an Irish passport, it's something we take very seriously.
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The investigation was set in motion after the Passport Office noticed there were irregularities with two passports that were being issued when they ran an internal check.
The Garda National Bureau of Criminal Investigation was informed and a joint investigation was started.
A 30-year-old man was arrested yesterday in Skerries, north Dublin and let go in the early hours of this morning without charge.
A woman was arrested in Dublin but was soon released from custody on Wednesday.
Both were held under section four of the Criminal Justice Act.
A file on the man is being prepared for the Director of Public Prosecutions.
Customer services given by the Passport Office won’t be affected by the investigation.
The department said: "This is now a criminal investigation into passport fraud.
“The two employees work at the passport office in Dublin.
"The Passport Service takes the issue of passport fraud very seriously and in the last number of years has strengthened measures to identify and prevent potential fraud."
Tanaiste Eamon Gilmore said no Irish passport holders were at risk from the fraud.
He said: "There's no risk to the passports that are held by Irish citizens.
"We have in place in the passport service very thorough anti-fraud measures. I think it's clear from this those measures were working and are working.
"It is unfortunate at any time if there's fraud associated with an Irish passport, it's something we take very seriously.
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