Yes, it is a fire hazard
|I still unplug mine and put it in the cabinet every time I use it after seeing the damage it could do.
Yes, all appliances and other electrical devises, are still active and do consume electricity, even when they are not being used. Therefore, I unplug anything I am not using (or will not be using for a while) for the most part, except my computer, washer, dryer and microwave. Our TV is on a "switched" outlet that I can turn off on the wall. You can never be too safe, where fire safety is concerned. Please do not risk it, keep the towels away from the toaster and keep it unplugged while not in use