Police responded to a report of a suspicious device discovered in a front yard in the 1600 block of Oakwood Avenue last Saturday around 8:21 p.m.
A camera and some equipment were found hidden in the bushes by the homeowner, police said. The camera was pointed in the direction of other homes in the area.
"Officers examined the camera and there was no internal storage; however, a mobile hot spot was connected to the camera," police said in a news release. "Based on this discovery, it appears the camera was sending recordings to a cloud-based application."
Authorities believe burglary crews plant so-called "camouflage cameras" and then use the footage to target homes, gathering information such as residents' daily routines.
The discovery in Arcadia is the latest in an alarming trend that's been happening across Southern California. Similar incidents were reported in Santa Barbara and Alhambra just last month.