Smart and connected toys require awareness by parents. Understand the technology involved, and be smart and informed about the new world of connected toys. When toys are dangerous, it's because of culture, not the presence of technology. In fact, smart and connected toys are not that much different from any other consumer electronics products.
Why is this a big deal?
I.D. Theft & Fraud. The worry is that even basic pieces of information could allow criminals to start building profiles of children, potentially setting them up for identity theft or other fraud in the future. Children have no credit history and their parents generally aren’t checking their credit reports. This makes them easy targets of fraud could go undetected for years, till they try to open what they think is their first credit card account
Virtual Kidnapping. A criminal would use the information they had about a child to convince a parent that they had kidnapped the child and demand a ransom.