"It is not within my jurisdiction, it is not within the European Union, it is Russia.
Mr Graham said he was working with foreign agencies including the US Federal Trade Commission, as the website appeared to be using an Australian domain name bought via an American company.
Webcams may be installed at places such as childcare centres, offices, shops and private areas to monitor security and general activity.
Webcams have been used for augmented reality experiences online.
"This warning from the ICO should come as a timely wake up call that the public need to start educating themselves about the technology they are bringing into their homes and how to keep it secure." Mark James, security specialist at Eset, added: "It is down to the individual to decide where to place the camera - once placed, a decision should be made as to what is made available for online streaming.
"I totally understand why you would want to stream your front drive or even the alleyway providing access to the back of the house but honestly, in what situation would you need to stream your children's bedroom outside of your private residence?