Spiral Toys — a division of Mready, a Romanian electronics company that lost more than 99% of its market-cap in 2015 — makes a line of toys called “Cloudpets,” that use an app to allow parents and children to exchange voice-messages with one another. They exposed a database of millions of these messages, along with sensitive private information about children and parents, for years, without even the most basic password protections — and as the company imploded, they ignored both security researchers and blackmailers who repeatedly contacted them to let them know that all this data was being stolen.

Source: Collapsing “connected toy” company did nothing while hackers stole millions of voice recordings of kids and parents | Boing Boing