Yes, there is a huge problem about using moth balls anywhere but where they are supposed to be used....closed up so that they don't poison anything but the insects they are supposed to. The fumes alone are highly toxic.

Moths balls are highly toxic to anything that may happen upon one by accident. Birds may be especially prone to poisoning because they may try to eat them. Vets report way too many accidental poisonings of dogs due to moth balls.

There are commercial repellents on the market; you can also erect a fence to keep the varmints away.

While there are many that advocate the use of Moth Balls to deter many critters in gardens keep in mind that the active ingrediants of moth balls are extremely toxic. Moth balls are meant to be used in a closed environment, not someplace where they can adversly affect human health. Naphthalene or paradichlorobenzene are both potential carcinogens in humans.
Moth balls have no place in the garden.

Here is a link that might be useful: About Moth Balls

Which makes one wonder why we put them in our HOUSE in the first place!

Well, mothballs are meant to be used in a sealed environment of some kind so that the fumes kill the larvae of moths or beetles. When they are used to repel all kinds of animals, people get sick. Scary, isn't it?