A Stanford University student recently discovered a security flaw with Adobe’s Flash Player that allowed malicious users to activate your webcam and microphone without your knowledge.They could then tap into the video and audio to watch and listen to your every move. OK, that sounded a lot less sensationalist in my head. Unfortunately, up until a few days ago, this exploit very much existed and Adobe was working feverishly on a fix. Feross Aboukhadijeh, the aforementioned Stanford student, wrote about the flaw on October 18.
According to Feross Aboukhadijeh:-

"I discovered a vulnerability in Adobe Flash that allows any website to turn on your webcam and microphone without your knowledge or consent to spy on you. It works in all versions of Adobe Flash that I tested. I’ve confirmed that it works in the Firefox and Safari for Mac browsers. Use one of those if you check out the live demo. There’s a weird CSS opacity bug in most other browsers (Chrome for Mac and most browsers on Windows/Linux)."

Later Adobe issued a critical update for its Flash Player software. The patch fixes six security vulnerabilities, at least one of which is a zero-day vulnerability being actively exploited in the wild. The details of the Adobe security bulletin explain, "This update resolves a universal cross-site scripting issue that could be used to take actions on a user's behalf on any website or webmail provider if the user visits a malicious website (CVE-2011-2444)," adding, 

"Note: There are reports that this issue is being exploited in the wild in active targeted attacks designed to trick the user into clicking on a malicious link delivered in an email message."
The zero-day bug fixed today is similar to a flaw in Flash that was patched in June. Coincidentally, both the June vulnerability, and this one patched today were reported to Adobe by Google.

To download the Patch and more about Adobe Security Bulletin Click Here