The Information Commissioner's Office (ICO) said that hackers were taking advantage of devices without security protection and with weak passwords.
Homes and businesses across the UK have been targeted, including a gym in Manchester, a house in Birmingham, and an office in Leicester.
"The website, which is based in Russia, accesses the information by using the default login credentials, which are freely available online, for thousands of cameras," explained Simon Rice, ICO group manager for technology.
"This is a threat that all of us need to be aware of and be taking action to protect against."
Rice warned that those who use their webcams remotely to monitor their property were particularly vulnerable.
"As a last resort, you can always cover the lens if you don't want to use the camera all of the time," he suggested.
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