According to the report, “We describe how to disable the LED on a class of Apple internal iSight webcams used in some versions of MacBook laptops and iMac desktops […] This enables video to be captured without any visual indication to the user and can be accomplished entirely in user space by an unprivileged (non- root) application.” This is accomplished by reprogramming the camera’s micro-controller, from which they were able to turn on the webcam separately from the light.
The semi-good news is that the hack affects older MacBook computers up to 2008’s models, include the iMac G5, so if you’re a new owner of a MacBook Air/Pro or iMac, you can rest easy, but if you want to be safe, you could always place a tape over the iSight camera when not in use.