The LED light on the webcam is bypass-able. On many cheap laptops it is controlled in software (at the kernel level), but even on Macs where it is meant to be hardware enforced it can be bypassed:
http://www.washingtonpost.com/blogs/the-switch/wp/2013/12/18...
Disabling the camera LED is a fairly standard feature in malware suites. Even a lot of USB webcams control the LED from software. The LED is just a feel-good feature.