A storage device contains a smart-card device and a memory device, both of which are accessed though a controller. The storage device may be used in the same manner as a conventional smart-card device, or it may be used to store a relatively large amount of data in various partitions corresponding to the protection level of the data stored therein. The smart-card device stores critical security parameters that are provided to the controller to protect access to some or all of the partitions of the memory device. A host connected to the controller issues commands, and the controller analyzes the commands and responds to them in various ways depending upon the nature of the command. In particular, depending upon the nature of the command, the controller may either pass the command to the smart-card device, or ignore the command either indefinitely or until a predetermined event has occurred.