(Bloomberg View) – How dangerous is a teddy bear or a doll? In the Internet of Things era, it's not an idle question but one for parents and regulators to ponder seriously.

On Monday, Troy Hunt, the cybersecurity expert who maintains the “Have I been pwned?” database of major breaches affecting the clients of internet businesses, revealed a problem with CloudPets, a series of cuddly toys made by a U.S. company called Spiral Toys. The toys allow parents to talk with their kids remotely. The conversations were recorded and stored — along with users' encrypted passwords — on an unprotected server that belonged to a Romanian company called mReady. The passwords were easy to break.

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