If it’s too good to be true, it probably is. In Mike Olsen’s blog at artfulhacker.com he reports on getting a great deal on an IP camera from Amazon, but while troubleshooting some issues he inspected the firmware and found a link to a known malware site. Apparently some versions of the camera software have the malware and some do not.
On a different forum another user reported finding the malware and was able to identify a good version of the firmware vs a malware infected file. This is from a Whirlpool.net.au forum discussing the SC10IP camera available from KMart.
With the influx of IoT devices (Internet of Things) appearing throughout our homes and offices, most will have the ability to upgrade their firmware via the internet. When upgrading firmware, be sure you are connecting to a proper server and downloading the correct file. Particular attention should be paid to any devices that let you use a browser interface for viewing, programming, or operating. IP Cameras would be especially vulnerable. Many camera browser viewers will prompt you to download a java script or other file to allow you to use the full features.
There are so many good deals available on Amazon, DealExtreme (dx.com), and other sites they can be very hard to resist. For any devices that you intend to connect to your network, it would be wise to choose a reputable source, and be sure you have proper security and anti virus on your computers. A twist on the old expression: if a deal looks too good to be true… it may contain spyware.