Update: I studied the settings of my router and its (pretty tight) firewall functionality.
Based on the settings shown below (sorry, German) I do not see any fat chance, that intruders can access this IPcamera to cause havoc to its settings? I am no real expert as to all these port and filter features, but they appear to be reasonable and useful, based on Help info I read about them.
Maybe it IS a memory overrun as indicated before , the Firmware writing into the WLAN settings page by accident and wiping the data/connection? It would explain the random SSID name entry (varying number of silly characters). Not sure how these settings could be 'activated' without the user confirming the changes by clicking a 'SET' button?
Still waiting for the new LAN repeater to string some copper wires to this stupid camera.